Japan 4 Major Stainless Steels Post Recurring Loss for Fiscal 1H

Japanese 4 major stainless steel makers posted recurring losses for the first 6 months of fiscal 2009 (April-September) while Nippon Steel & Sumikin Stainless Steel Corporation saved recurring profit. The 5 makers’ production recovered and their losses were narrowed for July-September compared with April-June. Meanwhile, the makers couldn’t pass material cost upsurge such for nickel on the product prices. Strong yen exchange rate also impacted their profitability.

The 5 makers are likely to post recurring profits for the second half year of fiscal 2009 thanks to their cost cut efforts and output volume recovery. However, they are concerned about unforeseeable market condition for January-March.

Nippon Metal Industry’s production totaled 124,000 tonnes for April-September 2009, down by 26% (43,000 tonnes) from the corresponding period of fiscal 2008. The output for July-September increased by 22% to 68,200 tonnes compared with April-June. The operating rate is near 80% at present.

Crude steel output by Nisshin Steel’s stainless steel business unit was 250,000 tonnes for April-September 2009 despite of steady export for China. The firm plans the output at 280,000 tonnes for October-March.

Nippon Yakin Kogyo’s sales volume increased by 34.2% to 51,000 tonnes for common grade stainless steel products and by 83.7% to 9,000 tonnes for high functional products during July-September compared with April-June. The demand was active mainly for export. However, the firm couldn’t gain recurring profit due to the fail in price hike to pass high nickel cost.

Nippon Kinzoku turned into the black in September. The current output recovered to 4,000 tonnes per month.