Japan: Tokyo Steel posts growth in steel sales in Apr-Dec’22

Japan’s leading EAF steel producer, Tokyo Steel, has announced its financial results for the April-December, 2022 period. The company’s net sales stood at JPY 272.35 billion, up 42.3% y-o-y. Ordinary income rose by 42.3% to JPY 34.1 billion and net income by 39.5% to JPY 29,396 million during the period.

Sales and profits reached their highest level since the April-December, 2008 period, despite further increases in energy costs and lower than expected steel scrap prices supported by strong domestic demand and effective company-wide cost reduction efforts, resulting in higher sales and profits.

Sales volume

In April-December, 2022, steel sales rose by 394,000 t y-o-y to 2.34 mnt in which the share of exports fell by 21,000 t, down 453,000 t. Moreover, steel sales in October-December were recorded at 819,000 t, down 43,000 t y-o-y.

Out of the total increase in sales, bar steel sales rose 46% (43% for shaped steel, 3% for steel bars) and 54% for steel sheet (43% for thin sheet and 11% for thick plate).

Compared to the same period of the previous year, “we were able to increase almost in a well-balanced manner” said Yuji Komatsuzaki, Director and Managing Executive Officer and General Manager of the Sales Division.

Prices

• The unit sales price of steel products from April to December was JPY 114,300/t ($877/t), an increase of JPY 19,100 ($147) from the same period of the previous year. During October-December the same stood at JPY 112,500/t ($864/t), up JPY 800/t ($6/t)
• The unit scrap price from April to December was JPY 54,900/t ($421/t), an increase of JPY 3800/t ($29/t). However, in October-December the price was JPY 50,200/t ($385/t), down JPY 600/t ($5/t)
• The metal spread, which is the difference between the selling price and the price of raw materials in April to December, was JPY 59,400/t ($456/t), an increase of JPY 15,300/t ($117/t). The same rose by JPY 1400/t ($10/t) to JPY 62,300/t ($478/t) in October-December.

Note: This article has been written in accordance with an article exchange agreement between Japan Metal Daily and SteelMint.