Tokyo Steel’s H-beam Award Volume Downs by 10% in November

Tokyo Steel Manufacturing estimates its H-beam order receipt volume from distributors decreases by more than 10% for November contracts compared with October. The firm announced to lower H-beam selling price by 5,000 yen per tonne for November contracts. However, the order award decreased due to dealers’ inventory minimizing policy before the low demand season for January-March. In addition, the demand recovery is delayed and the market price is weakening. Tokyo Steel will adjust H-beam output along the market demand.

The firm’s H-beam output is estimated to decrease by 18% to around 50,000 tonnes in October from September. The output might become below 50,000 tonnes in November. The firm even eyes output reduction wider than other H-beam makers. Mr. Naoto Ohori, Tokyo Steel’s managing director, indicated the firm’s monthly market share might lower to the third position in November.

Mr. Ohori said the firm puts precedence on profit taking before sales volume. H-beam makers are in severe price competitions, especially for civil engineering. Tokyo Steel shows a stance to refrain from low profit contracts.

Mr. Ohori said the firm watches out hot coil import volume due to higher yen exchange rate. Meanwhile, the firm forecasts H-beam import wouldn’t impact Japanese market seriously because of low quality and delivery service.

Tokyo Steel’s H-beam output decreased by 57% to around 60,000 tonnes in September from a year earlier. The output totaled 380,000 tonnes for April-September. The firm estimates the next-half-year output at around 400,000 tonnes and the annual production at around 800,000 tonnes for fiscal 2009 ending in March 2010, minus by about 40% from fiscal 2008 and by about 50% from fiscal 2007.