Shimizu Steel to Increase Crude Steel Output to 200,000T in F2010

Shimizu Steel, Japanese major electric furnace steel maker, plans to raise the crude steel output by 20% to 200,000 tonnes in fiscal 2010 ending in November by increasing billet export compared with the previous fiscal year. Tomakomai iron works in Hokkaido, Japan exports billet in the non-demand season of winter, which exported billet at around 60,000 tonnes in fiscal 2009. The iron works will increase the export to around 100,000 tonnes in fiscal 2010 to cover low domestic demand.

Tomakomai’s rebar output is estimated to have decreased by 10% in fiscal 2009 from fiscal 2008. Local rebar demand in Hokkaido area seemed 420,000 tonnes in fiscal 2007 (April 2007-March 2008), 310,000-320,000 tonnes in fiscal 2008 and around 300,000 tonnes in fiscal 2009. The local rebar demand is expected to keep flat in fiscal 2010 when some condominium constructions started around Sapporo.

Utsunomiya works’ annual sales decreased to 2.6 billion yen in fiscal 2009 (October 2008-November 2009) from 3 billion yen in fiscal 2008. The works decreased steel forgings output to 7,000-8,000 tonnes in fiscal 2009 from 9,000-10,000 tonnes in fiscal 2008. The sales would decrease mainly for shipbuilding despite of the demand recovery from injection machines.

Shimizu Steel has completed large capital expenditures until fiscal 2009. The firm’s net sales decreased by 39% to 13.3 billion yen for fiscal 2009 from fiscal 2008. The recurring profit decreased by 45%. The firm estimates the net sales would continue to lower in fiscal 2010 with the recurring profit near zero.