Japan Major Electric Furnaces Post Poorer Results in F2009

Japanese 5 electric furnace steel makers of major 17 makers posted the recurring loss in fiscal 2009 ended March 2010 while 11 firms posted lower profit compared with fiscal 2008 level. While ferrous scrap price decreased by around 20,000 yen per tonne or 40%, lower selling price and volume impacted on the results. Five makers of them expect higher recurring profit for fiscal 2010 from fiscal 2009 while 6 firms expect lower profit.

Tokyo Steel Manufacturing posted the recurring loss in fiscal 2009 for the first time in 8 years while JFE Bars & Shapes, Godo Steel, Daiwa Steel and Sumikin Steel & Shapes posted the loss for the first time in 10 years.

Many makers estimate the sales increase in fiscal 2010 from fiscal 2009 when the steel selling price is expected to increase by around 10% to more than 70,000 yen. However, ferrous scrap price is estimated to increase by up to 50% to around 40,000 yen in fiscal 2010 from fiscal 2009.