Mitsui & Co. Steel Strengthens Structural Steel Sales in Asia

Mitsui & Co. Steel, Mitsui & Co.’s subsidiary, enhances structural steel material sales in Asia. The firm has exported electric furnace steel makers’ products such as billet, long products and square steel tube. On and after September 1, the firm’s first division succeeded Mitsui’s export business of integrated steel makers’ bloom, sheet pile, shaped steel including H-beam, bloom and billet. The division’s steel export is expected to reach 500,000-600,000 tonnes in volume and 40 billion yen in value in fiscal 2011 ending in March 2012. The firm plans to expand the offshore sales such for ODA projects in cooperation with Mitsui’s Singapore office.

Mitsui & Co. Steel has tried to increase the sales for ODA projects since 2009. The firm cooperated in steel tube pile supply at 15,000 tonnes to Nyattam bridge construction project in Vietnam. Mr. Toshiya Adachi, head of the first division, analyzes 60-70% of steel demand in emerging countries is related to constructions and the division targets the demand related to infrastructure constructions in Asia. The division sent a staff for building material business to Hong Kong office on October 1 to follow the demand growth in Asia including South China and Vietnam.

At the same time, the firm cooperates with Mitsui’s other affiliates in Asia such as Siam Yamato Steel in Thailand and Vina Kyoei in Vietnam those which are structural steel makers. The division is approaching Japanese general contractors’ offshore branches. The division examines to send additional staffs in other areas to strengthen structural steel business.

In Japan, the division cultivates the market around Tokyo. The division’s trade volume is 1 million tonnes per year and the trade value is 100 billion yen, 60% of the peak level. Mr. Adachi said the division tries to raise the trade volume and value to 80% of the peak level.