Japan Major 5 Steels’ Raw Steel Output Drops by 0.1% in 2008

Japanese 5 major integrated steel makers decreased the raw steel output by 0.1% to 8.863 million tonnes in 2008 from last year. The output decreased to 5.87 million tonnes by 23.9% in December from a year earlier, which decreased for 3 consecutive months. JFE Steel’s output decreased by 30.2% in December from a year earlier largely. Nippon Steel’s output decreased by 24.8% in December, too.

The output in 2008 increased to 13.88 million tonnes by 2.8% for Sumitomo Metal Industries from last year, 8.05 million tonnes by 0.4% for Kobe Steel, 32.92 million tonnes by 0.2% for Nippon Steel while JFE Steel’s output decreased to 29.73 million tonnes by 1.7% and Nisshin Steel’s output reduced to 4.04 million tonnes by 1.6%. 5 makers’ output accounted for 74.6% against Japanese crude output. The rate increased by 0.8 percentage points against all crude steel.

5 makers are reducing the output largely for the response to slower steel demand due to world recession. 5 makers’ output decreased by 0.4% in October from a year earlier, by 10.7% in November from a year earlier and by 23.9% in December from a year earlier. Their reduction rate is expanding month by month.

JFE Steel decreased the output by 30.2% to 1.84 million tonnes in December from a year earlier. Nippon Steel decreased the output to 2.17 million tonnes by 24.8%. Sumitomo Metals decreased the output to 1.05 million tonnes by 11.9%. Kobe Steel decreased thee output to 520,000 tonnes by 19.6%. Nisshin Steel reduced the output by 16.6% to 300,000 tonnes. See attached table.