The Japanese metallurgical company Tokyo Steel expects the restoration of demand for steel in the second half of the year

The largest steel electrometallurgical company of Japan Tokyo Steel Manoufacturing awaits to improve the conditions for the metallurgical business in the second half of 2013. The impetus for this should be a new economic policy of stimulating the ABENOMICS business conducted by the Prime Minister of Japan Sindo Abe. This is discussed in Bloomberg.

“The state of things will not change in the first half of the year, since the demand for steel is still very bad,” says the managing director of Tokyo Steel of Kesia Imamuar. “The recovery will begin in the second half of the year and will be based on budget infusions into the economy and infrastructure projects for the development of Japanese cities. These measures are able to ensure the rise in production of steel by 22 percent to 1 million 100 thousand tons, ”added Imamoar.

In order to extract the maximum benefit from the reforms carried out by the Government, Tokyo Steel this year urgently switched from the production of sheet steel for the automotive industry to conventional structural steel and profiles for the manufacture of metal structures. The company expects to get their share from the announced two trillions of dollars, which will be aimed at developing the infrastructure of Japan.

The production of structural steel this year will reach 55 percent of the total production of steel in Tokyo Steel, while the production of the autolist and gas burners for boilers will be reduced up to 45 percent.

The second factor that will influence the growth of steel production in Japan will be a policy of weakening the yen against the dollar. She already managed to lose 12 percent of her value in dollar equivalent after Sindo Abe entered the post on December 26 and is trade today at the price of 97.12 yen per dollar.

The Japanese government plans to weaken the yen to the level of 105 - 110 dollars before the end of this year, which will be facilitated by the wave of optimism regarding the growth of the US economy.

Tokyo Steel intends to return to profitability after for four consecutive years she has to report on losses. Over the past year alone, the company's losses as a result of the depreciation of fixed assets amounted to more than $ 1 billion 300 million. This year, Kesi Imamoara firmly intends to turn off a series of failures and go to 2 billion yen.

Meanwhile, Tokyo Steel Manuapacturn shares continue to fall on the Tokyo Stock Exchange - today the price of one share is 378 yen, which is 10 percent less than in April last year.