October 07, 2008

Tokyo Steel to halt product exports in April

The Nikkei English News reported that Tokyo Steel Manufacturing Co will stop exporting steel products by the middle of April as high scrap iron prices and the appreciation of the yen squeeze profit.

The paper said that Tokyo steel's main steelworks has seen scrap iron prices climb 50% in 2007 and weaker steel demand in Japan might lead the company to cut production by almost 30%.

Mr Naoto Ohori MD of Tokyo Steel said that Tokyo Steel, which has stopped signing export contracts, cut its production by a little more than 20% last year, and may make deeper production cuts if housing starts in Japan decline further.

Nikkei reported that the company, which primarily exports to South Korea and Southeast Asia, will focus on sales within Japan to raise profit.