Japanese major 4 integrated steel makers posted record consolidated recurring profit for fiscal 2005 ended March 2006 from former record in fiscal 2004, according to their results announced by Friday. The 3 firms of them posted record net profit. All of them increase the annual distribution of dividend. They enjoyed favorable steel market condition especially for high-valued products both at home and abroad. They expect lower recurring profit for fiscal 2006 due to lower inventory valuation profit and higher payroll and fixed cost. Nippon Steel announced on Friday the consolidated recurring profit increased by 47.4% to 547.4 billion yen for fiscal 2005 from fiscal 2004. Sumitomo Metal Industries said on the day the recurring profit increased by 62% to 280.7 billion yen. Nippon Steel reported 310 billion yen of gain for the recurring profit for fiscal 2005 compared with fiscal 2004 from higher selling price and better products mix while the raw materials cost increased by 280 billion yen. The averaged steel selling price increased by 20% to 74,300 yen per tonne. The firm expects 460 billion yen of consolidated recurring profit for fiscal 2006. The firm said the profit decreases from fiscal 2005 when the firm posted 83 billion yen of one time gain from valuation profit of inventory and carry over low priced raw materials in fiscal 2005. The firm expects the steel output in fiscal 2006 is in line with fiscal 2005 due to ramping up output from output reduction to reduce sheet and plate inventory. Sumitomo Metals reported 220 billion yen of gain from higher selling price and better products mix for consolidated recurring profit for fiscal 2005 compared with fiscal 2004 while the raw materials cost increased by 132 billion yen. The firm expects positive 35 billion yen including 21 billion yen from price and products mix, 8 billion yen from favorable foreign exchange rate for fiscal 2006 while the firm anticipates 55 billion yen of negative impact including 31 billion yen from onetime gain of inventory valuation in fiscal 2005, 10 billion yen from higher raw materials cost and 14 billion yen from higher payroll and fixed cost. The firm expects the raw steel output is 13.4 million tonnes in fiscal 2006 compared with 13.31 million tonnes in fiscal 2005.
Japan Steel Scrap Composite Prices (Sangyo Press)02/21/2019
|31300YEN (-)||36200YEN (-)|
|280.21US$ (0.12)||324.08US$ (0.14)|
* Average of electric furnaces steel maker's purchasing price in Tokyo, Osaka and Nagoya (per ton)