Japan 2008 Raw Steel Output to Hit First Drop in 3 Years

Japanese raw steel output decreased by 12.9% to 8.881 million tonnes in November from a year earlier, which decreased for 2 months in a row, announced by Japan Iron and Steel Federation on Friday. The output decreased to less than 10 million tonnes for the first time in 9 months and was the lowest monthly output since April 2002 except for February output. The year to date output increased by 1.3% from same period of 2007 but the output could decrease for full year from 2007 if the December output would be the level in November. The yearly output could decrease for the first time in 3 years when Japanese makers expand the production cut.

The output decreased by 12.7% in November from October. The daily output decreased by 42,800 tonnes to 293,700 tonnes.

The converter steel output decreased by 10.4% to 6.67 million tonnes in November from a year earlier, which dropped for 2 months in a row. The electric furnace steel output decreased by 20.0% to 2.141 million tonnes, which decreased for 3 months in a row. The carbon steel output decreased by 13.5% to 6.858 million tonnes, which dropped for 2 months in a row, while the special steel output record first drop in 11 months when the output decreased by 10.8% to 1.954 million tonnes.

The hot rolled steel products output decreased by 14.3% to 7.772 million tonnes in November from a year earlier, which decreased for 2 months in a row and the lowest level since December 2001 except for February output. The output of carbon steel hot rolled steel products decreased by 14.3% to 6.164 million tonnes, which decreased for 2 months in a row and the lowest level since June 1999 without February. The output of special steel hot rolled steel products decreased by 14.2% to 1.608 million tonnes, which was the first drop in 13 months and the lowest level since August 2004.

The carbon steel product output decreased by 23.3% to 1.554 million tonne for long products and by 11.4% to 4.522 million tonnes for flat products in November from a year earlier. The hot rolled coil output decreased by 15.1% to 3.309 million tonnes while the output decreased by 25.4% to 709,000 tonnes for small bar and by 25.1% to 296,000 tonnes for H-beam.