Japan 5 Major Steels’ Raw Steel Output Increases for 5 Years

Japanese 5 integrated steel makers’ raw steel output is expected to increase to 85.8 million tonnes by about 3.3 million tonnes in Fiscal 2006 at the ended of March 2007 over the previous year, which will increase for 5 consecutive years, will exceed at 8.5 million tonnes since fiscal 1979 and will increase by above 2.3 million tonnes from the bottom in fiscal 1998. The output may keep upward in fiscal 2007 when they are continuing capacity investments. Domestic demand kept upward momentum in fiscal 2006. Japanese steel export continued good condition. Raw steel output will be 3.16 million tonnes for Nippon Steel in fiscal 2006 from 31.2 million tonnes in fiscal 2005, 2.9 million tonnes for JFE Steel from 2.672 million tonnes, 13.34 million tonnes for Sumitomo Metal Industries from 13.31 million tonnes, 7.82 million tonnes for Kobe Steel from 7.56 million tonnes and 4.04 million tonnes for Nisshin Steel from 3.69 million tonnes. Nippon Steel will carry out the expansion work of no.1 blast furnace in Nagoya works in April 2007 and will increase steel converter in Nagoya works in October-December 2007. JFE Steel had expanded 5 blast furnaces volumes, which can full operation 9 blast furnaces in fiscal 2007. Sumitomo Metals will stop the operation of no.2 blast furnace in Kashima works and will start the operation of no.3 blast furnace which is larger than no.2 blast furnace in May 2007. Kobe Steel will stop the operation of no.1 blast furnace in Kakogawa works and will start the operation of no.2 blast furnace which is larger than no.1 blast furnace in November-December 2007. Manufacturing Industries for such as automobile, shipbuilding, construction machinery or industrial machinery plan their production volume in fiscal 2007 more than the volume in fiscal 2006. Steel export market keeps good condition. Japanese all raw steel output is expected to increase to about 117.5 million tonnes in fiscal 2006 from 112.71 million tonnes in fiscal 2005, which will become second level in the past.