Japan: Tokyo Steel's Q2FY24 results show strong sales, profits y-o-y

Tokyo Steel's non-consolidated financial results for the period of April-September'23 (Q2FY24) showed net sales of JPY 189,152 million, up 6% y-o-y, operating income of JPY 21,539 million, up 4.3% y-o-y, ordinary income of JPY 22,493 million, up 4.6% y-o-y, and net income of JPY 15,612 million, down by 16.3% y-o-y.

Higher sales prices and volume drive record sales

Sales reached a new record high in the first half due to higher sales prices and volume. Steel sales volume during April-September was 1.65 million tonnes (mnt), up 130,000 tonnes (t) y-o-y. Sales to the domestic market were 1.26 mnt, an increase of approximately 20,000 t y-o-y. Exports were 391,000 t, up 110,000 t y-o-y.

Strong demand for steel sheets

The breakdown of the increase in the domestic market was that "the sales volume of steel bars decreased due to delays in the construction period of construction projects, and the sales volume of steel sheets decreased due to the impact of delays in the construction period, and we were able to capture the needs for decarbonization of steel sheets" said (Yuji Komatsuzaki, Managing Executive Officer and General Manager of the sales division).

Higher unit selling prices and lower purchase prices drive metal spreads

The unit selling price of products was JPY 111,600 per tonne, down JPY 3,600/t from the same period last year, and the purchase price of steel scrap was JPY 51,500/t, down JPY 5,800/t y-o-y. As a result, metal spreads increased by JPY 2,200/t to JPY 60,100/t.

Operating income improves y-o-y

Operating income for April-September was JPY 21.5 billion, an improvement of JPY 900 million from the same period last year. Metal spreads were JPY 3,632 million and volume increases were JPY 1,760 million. On the other hand, costs deteriorated by JPY 6,792 million. In particular, "electricity costs increased considerably, with electricity costs increasing by about 30% and fuel costs increasing by 10% compared to the same period of the previous year."

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