Nippon Steel to Reduce Rod for High Tensile Bolt by 40%

Nippon Steel announced the firm reduces the output of wire rod for high tensile bolt by 40% to monthly 3,000 tonnes in November compared with average in April-September at Muroran works. The firm tries to reduce the supply when the firm expects the demand decreases by 30% under very slow building activity. The firm increases the output of special steel bar and wire rod for automobile and construction machinery by using the additional capacity. The firm said high tensile bolt demand is still normal but expects the demand will decrease by around 30% in and after November compared with a year earlier when building start dropped widely in July-September. The firm decided to reduce the shipment for high tensile bolt while the firm increases materials for automobile and machinery industry. The demand of special steel bar and wire rod for automobile and construction machinery, which represents around 70% of 120,000 tonnes of production at Muroran, is very strong. The firm expects the automobile demand increases more in January-March. Domestic high tensile bolt consumption is around 12,000 tonnes per month and Nippon Steel supplies 5,000 tonnes of rod for group’s NS Bolten and Nichia Steel Works and other processors.