Sumitomo Metals to Increase Steel Sales to 6.5MT in 2H of F2011

Sumitomo Metal Industries estimates its six-month sales volume of steel products could increase by 27% to 6.5 million tonnes in the last half of fiscal 2011 ending in March 2012 compared with the first half year. The quarterly sales volume dropped to 2.24 million tonnes for April-June just after the Great East Japan Earthquake while rebounded to 2.88 million tonnes for July-September. As total, fist six-month sales volume represented 14% minus year-on-year. The firm currently reviewed full-year sales volume plan downward by 300,000 tonnes to 11.63 million tonnes for fiscal 2011, taking account of negative factors such as food in Thailand. Meanwhile, sales of seamless steel tube keep steady. Steel sheet sales are also expected to maintain high level for domestic car makers.

In the first half year, the firm’s crude steel production decreased by 10% to 6.11 million tonnes from a year earlier. Kashima iron works was temporarily downed by the mega earthquake. The sales volume decreased by 14%. In the second half year, export volume is estimated to decrease by 300,000 tonnes mainly for steel sheet due to high yen rate, weak Asian market price and flood in Thailand. Meanwhile, both steel output and sales volumes are expected to increase from the first six months.

The sales volume of steel sheet and plate is expected to increase by 35% to approximately 3.5 million tonnes compared with the first six months. Steel sheet sales would maintain high level mainly for automobile and plate sales could keep firm mainly for energy industry. Slab sales volume is estimated to increase by 180,000 tonnes to 1.44 million tonnes against the first six months. Special steels would increase by 24% to 680,000 tonnes thanks to strong demand related to automobiles.

Steel tube sales volume is estimated to increase by 26% to 780,000 tonnes, in which seamless steel tube would increase by 15% to 540,000 tonnes.