Japan Electric Furnace Steels Post Lower 9-month Profit

Japanese major 11 electric furnace steel makers posted 40-60% lower recurring profit for April-December from same period of 2006 while Yamato Kogyo reported record profit due to profit from offshore operations. Most of them are suffered from more than 10,000 yen per tonne higher ferrous scrap cost. They expect the lower full year profit for the year ending March 2008. Tokyo Steel Manufacturing reported the scrap purchase price increased to current 47,500 yen per tonne at Okayama plant from 38,500 yen in April 2007. Godo Steel said the scrap price increased by averaged 11,500 yen, Kyoei Steel said the price increased by 10,700 yen and Chubu Steel Plate reported the price increased by 42.7% in April-December from same period of 2006. Their selling price improve was less than scrap price cost increase in April-December from same period of 2006. The price increase was 10,000 yen per tonne for Kyoei Steel, 8,300 yen for Tokyo Steel and 7,400 yen for Godo Steel. Yamato Kogyo posted 29.2 billion yen of equity method profit in April-December, of which 27.1 billion yen from Nucor-Yamato Steel of USA. However, the domestic operation was suffered from higher scrap cost.