Mr.Bada, Next-Chairman of WSA Delivers Message against Environment and Raw Material Matters

Mr. Hajime Bada, vice-chairman of World Steel Association (WSA) and president of JFE Holdings, was elected to next chairman of WSA on Tuesday. Mr. Bada attended a press conference and stated WSA’s assignments are diversifying and changing when membership of emerging countries is increasing. He said WSA should define its new trans-border roles in global steel industry where many countries show different stances on raw material and environment matters.

Mr. Bada explained American, European and Japanese steel makers led WAS 10 years ago while in recent years Chinese, Indian, Turkish or Russian steel makers newly entered WSA and regions of steel output and consumption have changed. After Lehman’s fall, economies have recovered rapidly in emerging countries. Economic growth gap has widened between emerging and developed countries.

Mr. Bada pointed out Japanese steel makers have recovered their operation rate to 90% of pre-shock level and have increased steel export with weak expectation for domestic market recovery. He suggested Japanese steel makers’ technology is world top level while Chinese and South Korean steel makers are aggressively catching up with Japan in recent days. Mr. Bada said Japanese steel makers should accelerate investment for R&D and human resources to keep competitiveness.

Mr. Bada stated Japanese steel makers don’t aim commodity products market. For example, H-beam is one of commodity products but Japanese steel makers can develop high-function H-beam for skyscrapers. Meanwhile, Mr. Bada said price competitiveness is necessary even for high-function products in global exporting market. He explained Japanese steel makers’ productive facilities are old but utilized and depreciated well to compete with steel makers in emerging countries. Mr. Bada analyzed productive costs will become not so different between steel makers in Japan and other Asian countries, such as China and South Korea, since labor cost is expected to rise in these countries.

Mr. Bada also referred to Japanese steel makers’ overseas business advance mainly in Asia. He said many countries seek to produce steel products locally since steel industry is one of key industries, while covering high-end steel products by import. Mr. Bada said Japanese steel makers should export high-end steel products while expand local production of commodity steel products. Mr. Bada showed an expectation that Asian steel demand growth is particularly strong and Japan has been very involved in the region geographically and historically.

Mr. Bada appreciated assumption of Anshan Steel, China as WSA’s vice-chairman. Mr. Bada said WSA expects for China’s participation in environment or raw material matters while Chinese steel maker showed an intention to consider world steel business in international framework.