Steel Industry Proves Sustainable Growth, Top News of the Year by JMB

The important news in Japanese steel industry in the year was proving sustainable growth of the industry when the integrated steel makers keep high level profitability despite of the higher cost for raw materials under record level output. Japan Metal Bulletin released the top 10 news of the year for the industry. Another topic is the high level cost for, ocean freight, crude oil and raw materials including iron ore, manganese, ferrous scrap and nickel. World mineral cost pressure could increase when world mineral majors get bigger and bigger when BHP Billiton tries to acquire Rio Tinto for more hegemony in the industry. Japanese integrated steel makers try to expand the high valued steel products output through expansion existing facilities and adding new capacity in Japan. They also seek growth in offshore market and Sumitomo Metal Industries decided new blast furnace in Brazil. Nippon Steel expands the soft alliance network in Japan and Asia. Japanese and Asian steel majors expand the alliance activity to compete with steel giant, Arcelor Mittal. Chinese steel is the big issue for world steel industry in years. Steel makers in USA and European Union try to add antidumping duty on Chinese steel import when China increased the steel export. However, Chinese’s steel export decreases monthly from the peak in April when the government try to reduce the export by adding export tariff. The government also tries to remove old, energy consumption heavy and environmental heavy impacting facilities with aggressive attitude more than before. Japanese steel industry experiences major demand drop in the building industry when new building standard law took effect in June and building start drops sharply after July. Japanese steel makers for construction materials reduce the output and the negative impact reduces the activity for appliances, new plant building and Japanese economy. Japanese electric furnace steel makers showed sign for another consolidation process while steel distributors for construction materials are forced to restructuring.