The hottest steel industry in Japan faces a double

  • Detail

Japanese steel industry is facing a double blow

Japanese media said that measures such as the Chinese government's strengthened restrictive measures have led to a surge in coal prices in the international market, directly impacting the earnings of steel enterprises using coal as raw materials. After the overcapacity problem of China's steel industry, the Japanese steel industry is facing a double blow of "China risk"

according to Japan's "Daily" on December 1, Rong Minzhi, deputy president of Nippon Steel Sumikin, Japan's largest steel enterprise, stressed at the settlement meeting in November: "this has exceeded the limit of our independent efforts."

every three months, large iron and steel enterprises will sign contracts with resource enterprises on the price of raw coal used for blast furnace combustion to enhance enterprise transformation and upgrading. According to the contract signed by Nippon Steel and Sumitomo, the price of raw coal per ton in the second quarter of this fiscal year (July to September) was $92.5, while in the third quarter (October to December), it jumped to $200, more than doubling. The high price of raw coal has increased the manufacturing cost of steel by 10000 yen per ton. According to Akihito meihara, deputy president of Kobe Steel, the rising trend of raw material prices will continue at least in the second half of the fiscal year

global raw materials to avoid causing damage, coal shortage is one of the reasons for this price rise. The Chinese government has set a target of reducing coal production by 250 million tons this year to rationalize inefficient coal enterprises. According to the China Development and Reform Commission, the target is expected to be completed on schedule by limiting the number of days of coal mine construction. However, China is also facing a serious shortage of coal supply, and the import volume has risen sharply. The government then quickly adjusted its policy and ordered coal enterprises to increase production at the end of October

in addition to the tight supply and demand in China, which accounts for about half of the global coal consumption, Australia, one of the few coal producing countries of the Chinese Academy of Sciences and the Chinese Academy of engineering, has experienced coal mine accidents, resulting in increased demand pressure on the international market. At the end of last year, the price of raw coal fell below $80 per ton, but now it has broken through $300. Speculative capital that expects prices to continue to rise has also entered international transactions, intensifying the rate of price rise

steel industry giants such as Nippon Steel Sumitomo, Japan iron and steel engineering holding company (JFE holding), Kobe Steel Institute have stabilized the increased costs by raising steel prices. However, this move is bound to lead to the dissatisfaction of trading partners, leading to the worrying future performance of these enterprises

on the other hand, it still takes time to solve the problem of overcapacity in China, which has been a headache for steel enterprises. With the recovery of demand brought by the increase of domestic infrastructure investment in China, crude steel production in October increased by 4% year-on-year. The cumulative output in the first 10 months of this year also exceeded that of the same period last year. Steel exports continue to increase year-on-year, so it is generally long to choose single column type, and the steel price in the world market is still difficult to recover at present

Copyright © 2011 JIN SHI