JFE in Japan Agrees to 55% Iron Ore Price Hike

123jump.com Staff
08 Mar, 2010
New York City

Japan January exports surged 41% and imports increased 7% as exports to the U.S., EU and China rebound for the second month in a row. Current account swings to a surplus from a year ago month. JFE Holdings agreed to a 55% increase in price in a quarterly contract.

[R]5:00 AM New York, 7:00 PM Tokyo – Japan January exports surged 41% and imports increased 7% as exports to the U.S., EU and China rebound for the second month in a row. Current account swings to a surplus from a year ago month. JFE Holdings agreed to a 55% increase in price in a quarterly contract, a departure from a yearly price negotiation.[/R]

Japan’s stock indexes rose after January exports rose more than forecasted, according to a government report and a private report suggested that corporate bankruptcies dropped in February.

French President Nicholas Sarkozy after a meeting with Greek Prime Minister George Papandreou said that Greece does not need emergency funds but Europe is prepared to help Greece if needed. Papandreou is scheduled to meet U.S. President Barack Obama in Washington tomorrow.

Greece is rated A2 by Moody''s Investors Service and BBB plus by Standard & Poor''s and Fitch Ratings.

Nearly 20 billion euros of debt is due to Europe’s most indebted country in April and May. Greece has the largest budget deficit as a percentage of its gross domestic product of any nation in the euro zone.

In Tokyo trading Nikkei 225 Stock Average jumped 2.1% or 216.96 to 10,585.92, and the broader Topix Index advanced 1.8% to 927.31.

In the first section of the Tokyo Stock Exchange 9.2 billion shares worth 616 billion yen were traded and in the second section 136 million shares valued at 2 billion yen changed hands,

Of the Nikkei 225 index stocks, 213 gained, 10 fell, and 2 were unchanged. Tosoh Corp. led advancers in the index shares with a rise of 6.2% followed by Dentsu Inc. increasing 6.04%.

Japan’s Exports Soar 40.6% in January

Japan’s Ministry of Finance reported today that the country’s current account surplus rose to 899.8 billion yen in January from a deficit of 132.7 billion yen in the comparable year ago period.

The balance of trade in goods and services posted a surplus of 37.3 billion yen from a deficit 1.1 trillion a yen a year earlier, while the surplus in merchandise trade stood at 197.2 billion yen.

Exports gained 40.6% to 4.6 trillion yen on increasing shipments Asia, particularly China.

Imports advanced 7.1% to 4.4 trillion yen as crude oil import prices edged up 80%.

February Lending Falls 1.6% to 400 trillion yen

Bank of Japan said today the average lending by financial institutions fell 1.6% to 400.16 trillion yen in February, dropping for the third consecutive month on falling corporate fund demand.

Lending at city banks, including major banks and trust banks, contracted 3.3%, while lending at chinking banks decreased 0.5%.

However, the combined average lending balance at regional and second-tier regional banks climbed 0.3%.

Corporate Bankruptcies Drop 17% in Feb

Private research firm, Tokyo Research Ltd said today the number of companies entering bankruptcy with debts of at least 10 million yen decreased 17% to 1,090 in February from a year ago, falling for the seventh consecutive month.

Corporate bankruptcies declined below 1,100 in the month for the first time in four years.

U.S. Unemployment Holds at 9.7%

U.S. Bureau of Labour Statistics reported Friday the nonfarm payroll employment declined 36,000 in February, while the unemployment rate held at 9.7%, lower than estimated rate of 9.8%. Nearly 40% of the unemployed are looking for work for more than six months.

Employment fell in construction and information technology sectors while temporary services added jobs.

Nikkei Movers

Fujitsu Ltd led the decliners in the Nikkei 225 Stock Average with a loss of 2.7% followed by losses in Mitsubishi Paper Mills Limited of 0.9%, in Nippon Light Metal Company, Ltd of 0.9%, in Chubu Electric Power Company, Incorporated 0.7% and in The Tokyo Electric Power Company, Incorporated 0.4%.

Tosoh Corporation led gainers in the Nikkei 225 Stock Average with a rise of 6.1% followed by gains in Dentsu Inc 6.0%, in Fuji Electric Holdings Co., Ltd of 5.7% and in NTN Corp 5.3%.

Other Movers

Dentsu Inc advanced 6.0% to 2,354.00 yen after the advertising company said its revenue in February increased 8.8% to 105.7 billion yen from a year ago.

JFE Holdings increased 3.6% to 3,570 yen after it agreed over the weekend to a price increase of 55% to $200 a ton for a short term delivery for the period between April and June instead of annual contract.

Nissan Motor Co added 4.7% to 733.00 yen after the carmaker and Russia’s ailing car giant AvtoVAZ planned to begin the production of Renault and Nissan in 2012 to 2013 according to RIA Novosti.

Sony Corporation rose 2.8% to 3,295.00 yen and Toyota Motor Corp added 2.6% to 3,515 yen as the yen weakened against the dollar.