Mitsui & Co. to Expand Steel Trading by 20% in Asia Pacific in F2015

Mitsui & Co.’s Asia Pacific Business unit targets annual 5 million tonnes of steel trading in fiscal 2015, which is 20% higher than fiscal 2009 level. The unit tries to follow the growing demand in the area by focusing on growing items including automobile and construction steel products.

The unit’s iron & steel products division covers Southeast Asia, China, South Korea, India and Australia to follow the distribution while the division plans to business strategy for future growth. The division expects construction steel demand increases in Southeast Asia when subway construction and other infrastructure investment increase in Singapore, Indonesia and Vietnam. The division also expects steel pipe and plate demand increases in energy industry when the higher energy demand encourages oil and gas development mainly in Australia. The division also follows high level steel demand in China despite of recent slowdown while the division follows the firm demand for manufacturers in Thailand and Australia.

The division tries to develop the growing market through tie-up with Japanese steel makers including major integrated steel makers. The division improves the alliance with Vina Kyoei Steel in Vietnam and Siam Yamato Steel in Thailand, both of which Mitsui & Co. has interest in.

The division also tries to follow growing demand from transplants of Japanese makers for automobile and construction and industrial machinery in the area through further tie-up with Mitsui & Co. Steel. The division also seeks further alliance and cooperation with local steel makers and distributors based on existing sales network to strengthen the business in China, India, Vietnam and Indonesia in order to follow growing market.

The division plans to expand Chinese coil center network through joint venture with Baoshan Iron & Steel to follow growing demand. The division also eyes new coil center plant in major cities other than Delhi while the division decided to build new coil center in Delhi to follow higher output capacity of Indian Steel, which is local cold rolling and galvanizing maker with Mitsui & Co.’s share participation.