Tokyo Steel to Increase Steel Output by 49% in Jan-Mar

Tokyo Steel Manufacturing increases output steel products by around 49% to 670,000 tonnes for January-March from same period of 2011. Tahara plant increases the output to around 2.8 times at around 100,000 tonnes. The firm tries to meet the demand from rebuilding activity in disaster area of the major earthquake and large scale construction work mainly around Tokyo while the firm cannot make money from export due to historical high yen rate. The firm’s output decreases in January-February due to maintenance outage at plants but the firm covers production loss after the outage.

Tokyo Steel increased the output by 9.5% to 1.895 million tonnes for April-December from same period of 2010. Tahara plant increased the output to around 2.3 times at 260,000 tonnes. The firm increases the total output by 19% to 1.25 million tonnes in second half of fiscal 2011 ending in March from same period of fiscal 2010. The output increases by 14.7% to 2.5 million tonnes for fiscal 2011 from fiscal 2010 while the output is 300,000 tonne lower than the original plan. The output at Tahara plant increases to around 2.4 times at 350,000-360,000 tonnes for fiscal 2011.

Tokyo Steel’s average steel selling price was 67,000 yen per tonne for October-December and ferrous scrap purchasing price was 32,500 yen. The firm expects 65,000 yen of steel price and 32,000 yen of scrap purchasing price for second half of fiscal 2011. The firm expects 62,500 yen of steel price and 31,500 yen of scrap purchasing price for January-March.