Japanese major steel trading houses are increasing investment in China. Mitsui Corporation examines construction of additional steel sheet processing bases of Bao Mit Steel Distribution (BMSD), a joint company with Bao Steel. Metal One constructs coil centers in Hunan and Jiangxi, China and a plate processing center for building constructions in Wuhan, China. Marubeni-Itochu Steel starts production of blight steel sheet in January 2011. Sumitomo Corporation and JFE Shoji Trade Corporation decided enhancement of offshore coil centers.
They are currently focusing on investment in inland areas of China along Japanese steel users’ expansion in the areas. Japanese steel trading houses target supply of local steel products, including supply of Chinese steel makers’ products to Chinese capital users. Mitsui Corp eyes reorganization and new establishment of service centers of BMSD. BMSD presently has 11 steel processing bases and increases sales in cooperation with Bao steel’s sales bases for electric appliance and automobile makers. Mitsui Corp plans to increase steel trade volume by 15% to 3 million tonnes in 2011 from 2010. Marubeni Itochu Steel started sales and lease business of building materials in Shanghai in 2010. The firm eyes the business expansion to other regions. Sumitomo Corp installs tailored blank welding machine at the coil center in Nanjing and coil blanking machine at another coil center in Changchun. JFE Shoji installs a large leveler in Guangzhou in August 2011 and increases the processing capacity by 30%.Japan Steel Scrap Composite Prices (Sangyo Press)
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