Mon Jan 23, 2012
TOKYO Jan 23 (Reuters) - Tokyo Steel Manufacturing Co , Japan's biggest construction steelmaker, said on Monday it would keep prices unchanged in February, seeking to stem an inflow of cheaper imports, but added that the market shows signs of improvement on growing reconstruction demand.
Its pricing strategy is closely watched by Asian rivals like Hyundai Steel, POSCO and Baosteel, which have ramped up capacity, aiming to take advantage of their weaker currencies to boost exports to Japan.
"We hope to raise prices but the current yen rate and a potential rise in imports make it difficult to do so," Kiyoshi Imamura, marketing director at Tokyo Steel, told a news conference.
The company is hoping that China will ease its lending policy after the Lunar New Year break, stimulating steel demand.
In Japan, demand for construction steel has picked up since late last month on rebuilding of Japan's northeast that was devastated by massive earthquake and tsunami last March, Imamura said.
Showing posts with label Japan steelmakers. Show all posts
Showing posts with label Japan steelmakers. Show all posts
Monday, January 23, 2012
Friday, July 29, 2011
Japanese steel sales value up 16.5 percent in June over May
July28, 2011 |By Steelorbis
In Japan large-scale wholesale iron and steel sales value in June this year amounted to JPY 868 billion ($11.15 billion), increasing 9.5 percent compared to the same month of the previous year and up 16.5 percent compared to May of the current year, according to statistics released by the Japanese Ministry of Economy, Trade and Industry (METI). Meanwhile, in the second quarter of 2011 large-scale wholesale iron and steel sales value in Japan totaled JPY 2.376 trillion ($30.54 billion), increasing 3.6 percent over the same period of 2010, but decreasing 5.8 percent from the first quarter of this year.
Thursday, March 10, 2011
Nippon,Anglo agree 50 pct coal hike-Nikkei
Thu Mar 10, 2011 8:27am GMT
* Price rise in line with estimates - analyst
* Talks with BHP continuing - Nikkei
* Steelmakers seeking 25 pct steel price hike after April
March 10 (Reuters) - Nippon Steel Corp , the world's No. 4 steelmaker, and mining giant Anglo American Plc have agreed to a 50 percent jump in coking coal prices for the April-June quarter, the Nikkei business daily said, which is roughly in line with market estimates.
"This is not a big surprise as it is roughly in line with steelmaker and market expectations," said Kazuhiro Harada, an analyst at Nikko Cordial said.
"There is no need to change our earnings assumptions."
Nippon Steel declined to comment on the report.
The company expects surges in coal and iron ore prices to result in a 15,000 yen ($182) per tonne rise in the cost of raw materials after April. That would add around 20 percent to its average product price of 81,000 yen per tonne in the Jan-March quarter.
The company said it was seeking a 25 percent price hike from domestic steel users, like Toyota Motor Corp , aiming to fully pass on sharply higher costs from the October-March period.
The Nikkei, without citing sources, said on Thursday the coking coal price would be raised to a record $330 per tonne for the April-June period, up from $220 in the current quarter, due to growing demand in emerging countries and supply disruptions in Australia after disastrous rains battered its mines and infrastructure.
Nippon Steel and other major steelmakers are still in talks with BHP Billiton , the world's biggest diversified miner, which wants to set prices monthly instead of quarterly, the Nikkei said.
Steelmakers are worried that monthly price revisions would lead to cost volatility. The agreement with Anglo American is for quarterly prices, the Nikkei said.
The price of iron ore, another major input, is also expected to climb to a record high of around $170 a tonne in the April-June quarter, up 20 percent.
But the price of iron ore could peak in the July-September quarter as slower demand for steel in China amid monetary tightening and ballooned inventories has weighed on raw material prices.
($1 = 82.755 Japanese Yen) (Reporting by Yuko Inoue; Editing by Joseph Radford, sourced Reuters)
Tags : steel mills, raw material, BHP Billiton, Rio Tinto
Saturday, February 19, 2011
Nippon Steel Sumitomo merger to curb carbon credit demand
Saturday, 19 Feb 2011
(Sourced from www.reuters.com)
Tags:CERs, European market, Carbon traders, Kyoto credits
Reuters reported that the merger of Japan's two largest steelmakers will likely cut steel output at home as they look to expand offshore and will further curb demand for UN backed carbon credits beyond 2012.
Steelmakers in resource poor Japan have steadily become more efficient since the 1970s and now use 15% to 20% less energy to produce a tonne of steel than their counterparts in the United States, Germany, India or China. They are also well below self pledged emissions targets linked to the Kyoto Protocol, the UN's main climate change pact that sets targets for about 40 rich nations during the 2008-2012 first phase.
Japanese steel firms could have a competitive advantage by expanding in poorer nations since they will be more efficient and ahead on the emissions reduction curve against rivals. It could also drive greater efficiency in the industry.
Mr Masaki Mita, Japan representative for energy data and pricing service Argus Media, said that "A positive implication of the merger would be the chance they can make their advanced energy saving technology a global standard."
Nippon Steel Corporation and Sumitomo Metal Industries have likely achieved emission goals they set for themselves over the five years to March 2013, helping Japan meet its Kyoto obligations for its 2008-2012 phase.
Once the merger is completed in 2012, the combined firm will be the world's No 2 steel producer behind ArcelorMittal and is expected to lower their emissions further from the combined figure of about 60 million tonnes of CO2 equivalent per year now.
A Tokyo based carbon trader said that "The merger is set to be completed in 2012, so I don't see any big news that would affect demand for Kyoto credits right now. But in the longer term, changes in Japan's industrial structure mean there will be fewer buyers of carbon credits, and that will have an impact on the market."
Similar success by other firms in Japan's steel sector, the country's main CO2 emitter, has seen firms ceasing to buy Kyoto carbon credits, including CERs (certified emissions reductions).
Japan's steel sector as a whole has bought about 50 million CERs or 5% of the total estimated flow of CERs for Kyoto's five year first phase. The credits are generated from UN approved clean energy projects in developing countries.
Each CER represents one tonne of CO2 saved from being emitted, such as using wind power instead of coal to generate electricity. Based on current market prices in Europe, the 50 million credits bought by the steel sector are worth around EUR 570 million, showing how significant the sector is to the international market.
Carbon traders said that steel companies have considered selling their surplus CERs, but are waiting to see projected final emissions balances for 2008-2012.
That is partly because the goal the sector set for itself for 2020 looks easier to meet than the one for 2008-2012. S, Japan is developing an alternative to the U.N. market schemes to promote its energy saving technology such as those used by steelmakers, and can obtain carbon offset certificates via bilateral agreements with poorer countries. This means the steel sector might have another option even if it fails to meet its 2020 goal.
Unlike Japanese firms, ArcelorMittal has had little appetite for Kyoto credits, benefiting from having more than half of its steel production in non EU countries where carbon regulations are looser.
Carbon dioxide from burning fossil fuels is the main greenhouse gas that scientists say is heating up the planet. Growth in steel demand centers on emerging markets, which are the target for Nippon Steel and Sumitomo as well.
Mr Akihiro Sawa executive senior fellow at the 21st Century Public Policy Institute in Tokyo said that the two firms would come up with steps to cut their CO2 emissions worldwide by 10% to 20% below current levels. He added that "I don't think they have agreed to consider a merger in the context of global climate change. Their intention has been driven by rivals like ArcelorMittal and concerns about their purchasing power against resource firms. Having said that, I'm sure their agenda for merger talks will include a strategy to fight climate change."
In 1990, Japan's steel sector as a whole emitted just over 200 million tonnes of CO2. But a peak out in domestic output means the sector is well within the goal of 183 million tonnes a year on average for 2008-2012, which would be down 9 percent from the Kyoto Protocol's base year of 1990.
The steel sector has set its own target for 2020 based on CO2 per unit of output, which does not necessarily cap CO2 in contrast to its 2008-2012 goal. If the sector meets the Japanese government's crude steel output estimate of 119.7 million tonnes for 2020, up 9% from last year, its self pledged target is to cut CO2 by 5 million tonnes from business as usual levels of about 210 million tonnes by 2020.
Steelmakers in resource poor Japan have steadily become more efficient since the 1970s and now use 15% to 20% less energy to produce a tonne of steel than their counterparts in the United States, Germany, India or China. They are also well below self pledged emissions targets linked to the Kyoto Protocol, the UN's main climate change pact that sets targets for about 40 rich nations during the 2008-2012 first phase.
Japanese steel firms could have a competitive advantage by expanding in poorer nations since they will be more efficient and ahead on the emissions reduction curve against rivals. It could also drive greater efficiency in the industry.
Mr Masaki Mita, Japan representative for energy data and pricing service Argus Media, said that "A positive implication of the merger would be the chance they can make their advanced energy saving technology a global standard."
Nippon Steel Corporation and Sumitomo Metal Industries have likely achieved emission goals they set for themselves over the five years to March 2013, helping Japan meet its Kyoto obligations for its 2008-2012 phase.
Once the merger is completed in 2012, the combined firm will be the world's No 2 steel producer behind ArcelorMittal and is expected to lower their emissions further from the combined figure of about 60 million tonnes of CO2 equivalent per year now.
A Tokyo based carbon trader said that "The merger is set to be completed in 2012, so I don't see any big news that would affect demand for Kyoto credits right now. But in the longer term, changes in Japan's industrial structure mean there will be fewer buyers of carbon credits, and that will have an impact on the market."
Similar success by other firms in Japan's steel sector, the country's main CO2 emitter, has seen firms ceasing to buy Kyoto carbon credits, including CERs (certified emissions reductions).
Japan's steel sector as a whole has bought about 50 million CERs or 5% of the total estimated flow of CERs for Kyoto's five year first phase. The credits are generated from UN approved clean energy projects in developing countries.
Each CER represents one tonne of CO2 saved from being emitted, such as using wind power instead of coal to generate electricity. Based on current market prices in Europe, the 50 million credits bought by the steel sector are worth around EUR 570 million, showing how significant the sector is to the international market.
Carbon traders said that steel companies have considered selling their surplus CERs, but are waiting to see projected final emissions balances for 2008-2012.
That is partly because the goal the sector set for itself for 2020 looks easier to meet than the one for 2008-2012. S, Japan is developing an alternative to the U.N. market schemes to promote its energy saving technology such as those used by steelmakers, and can obtain carbon offset certificates via bilateral agreements with poorer countries. This means the steel sector might have another option even if it fails to meet its 2020 goal.
Unlike Japanese firms, ArcelorMittal has had little appetite for Kyoto credits, benefiting from having more than half of its steel production in non EU countries where carbon regulations are looser.
Carbon dioxide from burning fossil fuels is the main greenhouse gas that scientists say is heating up the planet. Growth in steel demand centers on emerging markets, which are the target for Nippon Steel and Sumitomo as well.
Mr Akihiro Sawa executive senior fellow at the 21st Century Public Policy Institute in Tokyo said that the two firms would come up with steps to cut their CO2 emissions worldwide by 10% to 20% below current levels. He added that "I don't think they have agreed to consider a merger in the context of global climate change. Their intention has been driven by rivals like ArcelorMittal and concerns about their purchasing power against resource firms. Having said that, I'm sure their agenda for merger talks will include a strategy to fight climate change."
In 1990, Japan's steel sector as a whole emitted just over 200 million tonnes of CO2. But a peak out in domestic output means the sector is well within the goal of 183 million tonnes a year on average for 2008-2012, which would be down 9 percent from the Kyoto Protocol's base year of 1990.
The steel sector has set its own target for 2020 based on CO2 per unit of output, which does not necessarily cap CO2 in contrast to its 2008-2012 goal. If the sector meets the Japanese government's crude steel output estimate of 119.7 million tonnes for 2020, up 9% from last year, its self pledged target is to cut CO2 by 5 million tonnes from business as usual levels of about 210 million tonnes by 2020.
(Sourced from www.reuters.com)
Tags:CERs, European market, Carbon traders, Kyoto credits
Tuesday, February 15, 2011
Japanese steels major eying USD 1000 FOB for HR export - JMB
Tuesday, 15 Feb 2011
JMB reported that Japanese major steel makers start sheet steel export price talk in the week for April to June 2011 period.
The makers already realized USD 750 per tonne to USD 800 per tonne FOB for hot rolled coil for March 2011 shipment while some of the makers offer USD 900 for spot transaction for March 2011 shipment.
They eye USD 1,000 level in and after April 2011.
The makers now prepare for higher offer for domestic sheet steel price and now the price hike range is considered at JPY 15,000 to JPY 20,000 per tonne level.
(sourced:japanmetalbulletin)
Tags: JMB, Japan steelmakers, steel prices, March2011 shipment, spot transaction, higher prices, raw materials
JMB reported that Japanese major steel makers start sheet steel export price talk in the week for April to June 2011 period.
The makers already realized USD 750 per tonne to USD 800 per tonne FOB for hot rolled coil for March 2011 shipment while some of the makers offer USD 900 for spot transaction for March 2011 shipment.
They eye USD 1,000 level in and after April 2011.
The makers now prepare for higher offer for domestic sheet steel price and now the price hike range is considered at JPY 15,000 to JPY 20,000 per tonne level.
(sourced:japanmetalbulletin)
Tags: JMB, Japan steelmakers, steel prices, March2011 shipment, spot transaction, higher prices, raw materials
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