Japan Electric Furnaces to Decrease Profit for Apr-Jun

Eleven of Japanese major 12 electric furnace steel makers decreased recurring profit for April-June except Yamato Kogyo because they couldn’t efficiency increase selling price against higher ferrous scrap price. Eleven makers’ profits decreased by 40-50% compared with the same period of last year when ferrous scrap price increased by over 10,000 yen per tonne or about 40% from the previous year.

Yamato Kogyo posted higher recurring profit and net profit thanks to positive earnings of Nucor Yamato Steel Company which is joint company with Nucor in USA. 12 makers’ return on sales decreased to 11.5% by 6.4 points from the same period of last year. Their price hike is expected to penetrate in the market while material price is expected to keep high level. 11 makers expect to increase the sales and decrease the recurring profit for the half-year ending September and for the business year ending in March 2008 except Yamato Kogyo.

See to attached table.