Dongbu Steel increases hot rolling and cold rolling capacity to each 3 million tonnes per year in 2012 and reduces the hot rolled coil production cost by 200,000 won or 14,800 yen per tonne in 2011 through power consumption cut of electric furnaces. The firm plans to produce more than 1.2 million tonnes coil for downstream operation while sells the rest for third parties in 2012. The firm also plans to establish overseas processing subsidiary or joint venture to increase the export.
Dongbu Steel exports about 40% of hot rolled coil for third parties sales when the firm increases the production to 3 million tonnes in 2012. The firm plans to improve the hot rolled coil quality to increase the supply for own cold rolling mill in 2011 and reduce the purchase from third parties. The firm also promotes the development of high grade hot rolled coil including low carbon and the product with X50, X 60 of American Petroleum Institute. The production of cold rolled coil of Dongbu Steel is expected to increase in 2011 from 2.5 million tonnes in 2010. The firm sees the production would increase before the completion of 50-60 billion won cold rolling capacity expansion for 3 million tonnes per year, which would end in 2012.Japan Steel Scrap Composite Prices (Sangyo Press)
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