Japanese Integrated Steels Cut Raw Steel Output in 2H

Kobe Steel reduces the crude steel output by 0.2 million tonnes in second half of fiscal year ending March 2009 compared with first half while Sumitomo Metal Industries also reduces the output by 0.1 million tonne, announced on Thursday. Both 2 integrated steels decided to reduce the output to meet the demand when they expect global steel demand declines under slower industrial activity. Nippon Steel and JFE Steel already announced the output reduction in second half. The major steel makers reduce the operation from years of full capacity running.

Kobe Steel reduced the unconsolidated crude steel output to 3.98 million tonnes in second half from 4.18 million tonnes in first half. Keiji Koyama, vice president said the higher grade steel shipment is expected to decrease for automobile while the carbon steel export is also concerned to decline after January.

Sumitomo Metal and subsidiaries reduce the raw steel output to around 6.95 million tonnes in the second half from 7.04 million tonnes in the first half while the sales volume is expected to decrease by 0.13 million tonnes. Fumio Honbe, vice president said financial crisis impacts strongly on industrial activity and steel industry can not avoid the impact.

Nippon Steel announced 1 million tonnes reduction in the second half from the initial plan while JFE Steel would reduce by 0.5 million tonne compared with the first half.