Quarterly pricing for iron ore and coking coal was ranked top news in steel industry in 2010 as Japan Metal Bulletin listed top 10 news. The shift from annual contract price to quarterly pricing encouraged shorter steel pricing period from traditional yearly pricing. Japanese steel makers tried to pass the higher cost for the raw materials on steel selling price but the limited cost covering reduces the steel makers’ profit.
World raw steel production would hit first 1.4 billion tonnes level in 2010 when Chinese production would reach the first 600 million tonnes and other emerging countries increase the production. The world production would renew the record for the first time in 3 years while the production in developed countries is well less than the peak. Nippon Steel launched aggressive global strategy to expand the annual supply volume to 60 million tonnes level by expanding the supply mainly in emerging countries. Other Japanese major steel makers including JFE Steel, Sumitomo Metal Industries and Kobe Steel also announced new investment to expand the offshore operations. See the list below.Steel Top 10 Largest Steel News of 2010
1. Quarterly Raw Materials Pricing
2.World’s Raw Steel Output in 2010 to Top Former Record in 2007
3. Nippon Steel to Expand Steel Supply to 60 Million tonnes
4. JFE’s Mr. Bada, Mr. Hayashida Assume Top of Industry’s Groups
Mr. Hajime Bada assumed CEO of JFE Holdings and Chairman of World Steel Association. Mr. Eiji Hayashida assumed CEO of JFE Steel and Chairman of Japan Iron and Steel Federation.
5.Another Aggressive Expansion by South Korean Steel MakersHyundai Steel Started integrated steel plant with 2 blast furnaces. POSCO launched various Korean and offshore expansion projects including the first offshore integrated steel plant in Indonesia.
6. Sumitomo Corp.’s Major Iron Ore Investment in Brazil
Sumitomo Corporation decided 160 Billion yen investment in Brazilian iron ore asset of Usiminas. Japanese trading companies try to secure mineral resources while the steel products sales divisions also invested to offshore business including Sumitomo Corp.’s acquisition of OCTG processor in Malaysia and Mitsui & Co.’s steel processing joint venture formation with Nucor.
7. Kobe Steel Starts First Commercial Plant for ITmk3
Kobe Steel started the first commercial plant in USA. The firm tries to establish the new iron making process to expand the operation to emerging countries including Vietnam and India.
8.NSSC Launches New Stainless Grade, FW Series
Nippon Steel & Sumikin Stainless Steel developed new stainless steel developed world first tin adding stainless steel grade, FW series. The firm expects the new grade will be accepted third major stainless grade after nickel series and chrome series products.
9. Severe Japan Construction Steel Demand
Very slow Japanese construction steel demand impacts electric furnace steel makers’ profitability. The slow demand also encourages rerolling capacity reduction and Nisshin Steel and major rerollers announced shutdown and integration of the lines.
10. Metal One Rebuilds Japan Coil Center Network
Metal One Corporation launched new flat steel processing holding company to integrated operation of major 2 subsidiaries of Isuzu Corporation and Suzuyasu Corporation. Shrinking Japanese flat steel demand forces integration of the distributors and processors.