Japanese Blast Furnace Steel Manufacturers’ Aggregate Market Value to Increase Sharply

The aggregate market values of Japanese major 5 blast furnace steel manufacturers have increased sharply for the past one year because their share prices have recovered at high paces since the interest of the market concentrated to steel industry share which had good achievement in the underling upward trend of Tokyo Stock Exchange. Total aggregate market value of them in January 4 for this year increased to 9.2241 trillion yen by 91.9% from a year ago. Aggregate market value of Nippon Steel closed in 3 trillion yen; the values of JFE Holdings and Sumitomo Metal Industries exceeded 2 trillion yen; Kobe Steel’s value reached 1-trillion-yen-mark; Nisshin Steel’s value increased sharply, too. Closing price of Nikkei Stock Average in January 4 for last year was 11,518 yen. That in January 4 for this year was 16,362 yen, up 42% from a year ago.The share price of Sumitomo Metal Industries increased to 478 yen from 139 yen over a year ago by 3.44 times; that of Kobe Steel increased to 391 yen by 2.49 times. That of Nippon Steel, JFE Holdings and Nisshin Steel increased dramatically, too.5 steel manufacturers accomplished record-high consolidated recurring profit on the settlement of accounts in the fiscal year ending in March 2005, and pushed the figure to the highest mark ever of the consolidated recurring price and net income in half-year earnings report for the fiscal period that ended in September. They had advanced improving their financial strength such as compression of debt with interest.Moreover, it is expected that they will update highest profit ever in the settlement of accounts in the fiscal year ending in March 2005; they are expected to pay an increased dividend. However, Akio Mimura, president of Nippon Steel, recognizes that their high technology or financial strength is reflected to share price adequately. It is important task that they raise their corporate value for insurance against contested takeover in that it is expected the restructuring of world steel industry will accelerate renewedly.