Mr. Muneoka Becomes Japan Steel Industry’s Leader

Nippon Steel’s president Shoji Muneoka assumed office of chairman of Japan Iron and Steel Federation on Tuesday. He said at the press conference the federation will cope with challenges for steel industry when steel industry face big issues including surging resource prices and global warming. He also said the federation tries to improve the visibility of the industry through the evens for 150 years anniversary since the start of Japanese modern steel industry. Japanese major steel makers are finishing price hike negotiations with the contract users to cover major part of higher raw materials cost. However, Mr. Muneoka said the steel users understand the situation of steel industry but the negotiation continues both with contract users and miners of iron ore and coal. Mr. Muneoka said potential merger of BHP Billiton and Rio Tinto could reduce competition especially for iron ore seaborne trade when major 3 companies including Vale control around 70% of the market. He said the federation informed such recognition to competition authority. On the other hand, he expects market mechanism could ease the tight raw materials supply in shorter or later. He also said steel makers should develop technology to use lower grade materials to improve the supply balance. Mr. Muneoka said post Kyoto protocol system should involve all major producing countries of green house gasses. He said the federation tries to contribute to effort to make such realistic system, under which players should share fair target to reduce green house gasses.