Tokyo Kotetsu to Increase Export Ratio to 30% in F2010

Tokyo Kotetsu, Japanese major angle maker plans to raise the export ratio by 3 percentage points to 30% in fiscal 2010 ending in March 2011 compared with fiscal 2009. There was no angle export in fiscal 2009 while the firm increased billet export to 84,425 tonnes mainly for South Korea and Taiwan, more than double of fiscal 2008. The firm plans to increase billet export by 6% in fiscal 2010 from 2009 to cover low demand in domestic market.

The unit export price of billet lowered by 48,844 yen to 38,453 yen per tonne in fiscal 2009 from fiscal 2008. For fiscal 2010, Tokyo Kotetsu prospects billet export price at 55,000 yen per tonne and ferrous scrap purchase price at 39,800 yen per tonne. Mr. Yoshitaka Minami, president of Tokyo Kotetsu said the firm tries to save 15,000 yen by cost cut for steel making in fiscal 2010.

The firm plans to increase angle sales by 15% in fiscal 2010 from 125,233 tonnes in fiscal 2009. The averaged selling price is estimated at 77,600 yen per tonne in fiscal 2010, which was 69,507 yen per tonne in fiscal 2009. Total sales of angle and billet are expected to reach 230,000 tonnes in fiscal 2010, increasing by 13% from 209,658 tonnes of fiscal 2009.

Capital expenditure is planned at 849 million yen in fiscal 2010, increasing from 383 million yen of fiscal 2009. The firm invests 160 million yen for steel making equipment, 330 million yen for rolling mills and 100 million yen for environment equipment.