Tokyo Steel to Start Fixed Outer Dimension H-Beam Production

Tokyo Steel Manufacturing starts production of H-beam with fixed outer dimension at Kyushu plant in as early as 6 months. The firm started development of production process and technology while the firm studies the details including size range. The firm tries to enter into beam market for major building market by the higher grade products while the product is produced only by integrated steel makers. The firm shifts to higher valued products when the domestic demand is slump and wouldn’t grow.

Tokyo Steel’s official said the firm tries to compete with integrated steel makers through the new products. The firm expects the product can be accepted by the market when some major distributors requested the production.

Tokyo Steel is domestic top share maker of H-beam but the application is mainly for small- and mid-sized building frame and civil works. Beam of major building is provided by integrated steel makers while Tokyo Steel provides pipe materials for major building.

An integrated steel maker said the production of H-beam with fixed outer dimension needs special care when the product needs more roll changes for fixed size. Other integrated steel maker source said the production needs operational knowhow to avoid deficit and to optimize the cross section shapes. Tokyo Steel has to clear the technological hurdle to start the production.

However, the firm can get higher value through the production. The market price of H-beam with fixed outer dimension is around 100,000 yen per tonne despite of the decrease under demand slump while the firm’s spot selling price is 65,000 yen for commodity grade SS400.

Nippon Steel started production of H-beam with fixed outer dimension, Hyper Beam in 1989. JFE steel’s brand is HISLEND-H and Sumitomo Metal Industries has HIFIT BEAM. Nippon Steel and JFE Steel share 80% of the market while Sumitomo Metals has 20% of the market in fiscal 2008 ended March 2009. The demand is expected to decrease to 300,000 tonnes in fiscal 2009 from around 400,000 tonnes in fiscal 2008.