Japan Major Electric Furnace Steels Post Higher Profit for April-June

Japanese major 9 electric furnace steel makers posted higher recurring profit for April-June from same period of 2008, according to major 12 makers’ results announced by Friday. The 12 makers’ sales decreased due to lower sales volume and price. Their averaged profit rate for the sales improved partly due to lower ferrous scrap price.

Their sales volume decreased in April-June from same period of 2008. The volume decreased by 50.6% to 193,891 tonnes for Godo Steel, by 46.7% to 390,000 tonnes for Tokyo Steel Manufacturing and by 30.8% to around 160,000 tonnes. The averaged steel selling price decreased by 28.6% to 67,800 yen per tonne for Tokyo Steel and by 16.4% to 72,327 yen for Godo Steel.

Their scrap purchase price decreased by 61% to 22,000-23,000 yen per tonne for Tokyo Steel in April-June from same period of 2008. The lower scrap cost contributed to their better profitability while Yamato Kogyo and Tokyo Kohtetsu posted lower profit and Topy Industries posted loss.

The 12 makers expect lower sales for the half year to September from same period of 2008. Kyoei Steel, Tokyo Tekko, Chubu Steel Plate, Asahi Industries and Hokuetsu Metal expect higher recurring profit while Topy Industries will post loss and other 6 makers will post lower profit. Toyohira Steel expects higher recurring profit for the full year to March 2010 but other 11 makers will post lower profit.