JISF Hopes Decent Judge by Fair Trade Commission on Integration of Nippon Steel and Sumitomo Metals

Mr. Eiji Hayashida, chairman of Japan Iron & Steel Federation (JISF), attended regular press conference on Wednesday and gave comment that he recognized management integration of Nippon Steel and Sumitomo Metal Industries as historical symbol while the integration can stimulate Japanese manufacturing industry’s competitive power. Mr. Hayashida said JISF has requested Japanese fair trade commission to operate antitrust law on global standpoint in order to enhance Japanese steel industry’s international competitiveness. Mr. Hayashida showed an expectation for the commission’s flexible action against integration of Nippon Steel and Sumitomo Metals.

Mr. Hayashida also commented on Japan’s budget bill for fiscal 2011 and apprehended negative impact of political chaos on duty exemption of oil and coal tax and reduction of corporate income tax. As for Middle East issues, he said antigovernment demonstration doesn’t make direct impact to Japanese steel export but may set off higher raw material price by higher oil price.

Mr. Hayashida also referred to coking coal price negotiation between JFE Steel and BHP Billiton. He commented as president of JFE Steel that JFE Steel can’t accept BHP Billiton’s offer to change contract term to monthly from quarterly.