Japanese Electric Furnace Makers Reduces the Output by 50-80% in January

Japanese common steel electric furnace makers are reducing the output by average 50% in January from a year earlier due to slower demand in additionally to conservative buying by users or inventory adjustment, some reduce the output by 80%. Users’ order and dealers’ shipping keeps low for rebar, H-beam, angle or channel. The demand isn’t expected to recover in the first half of 2008, according to the prevailing view. It seems difficult circumstances for them continue. Tokyo Steel Manufacturing, Japanese biggest electric furnace maker is expected to reduced a crude steel by 50% in January-March compared with August 2008 when was peak of crude steel, which isn’t negotiate the export during the past few months due to higher yen rate or downturn in world economy when the firm concentrates the export in January-march every year. JFE Bars & Shapes reduces the output by 40% in all works, Kajima, Himeji and Sendai in January from a year earlier.Godo Steel is likely to reduce the crud steel output by 80% in Osaka works which produces mainly wire rod and shaped steel in January compared with the fist plan, by 50% in Himeji works which produces mainly special steel such as structural steel, by 30% in Funabashi works which produces rebar. Kyoei Steel, Japanese biggest rebar maker is reducing by 50% in Hirakata works compared with ordinary level, by 30-40% in Yamaguchi and Nagoya works or Kanto Steel, the firm’s subsidiary. It’s clear when the demand revives. However, the gap between the supply and demand for angle and channel is starting tying thanks to their output reduction. They started the reduction bright and early with dropped actual demand. Major maker source said it’s well-advised that makers don’t produce as much as possible when electric power charge is rising in January-March.