Lower Metal Prices Hit Japan Major Smelters’ Results

Japanese 6 nonferrous smelters posted consolidated net loss for fiscal 2008 ended March 2009 under lower metal price and demand. Mitsubishi Materials and Mitsui Mining & Smelting expect net loss for fiscal 2009 due to severe business condition along with restructuring charges.

Nippon Mining Holdings’ metal unit, Nippon Mining & Metals posted 18.5 billion yen of inventory valuation loss for fiscal 2008. Sumitomo Metal Mining reported the valuation loss reduced the recurring profit by 21 billion yen. The lower metal prices reduced equity method profit from offshore mines.

Nippon Mining & Metals’ equity method profit halved to 33.7 billion yen for fiscal 2008 from fiscal 2007. Higher ore cost also reduced the smelters’ profit. Nippon Mining & Metals reported the cost reduced the recurring profit by 21 billion yen for fiscal 2008. Dowa Holdings reported the cost reduced the operating profit by 9 billion yen.

Mitsui Mining & Smelting expect the net loss for fiscal 2009 as fiscal 2008 due to restructuring cost. Mitsubishi Materials expects the net loss for fiscal 2009 due to impairment cost for loss making businesses. Sumitomo Metal Mining expect lower profit for fiscal 2009.