Japan Steels Expand Large Blast Furnaces Operations

Large blast furnaces with more than 5,000 cubic meters of capacity increased from 3 at the end of fiscal 2000 ended March 2001 to 11 furnaces out of 28 of operating blast furnaces in Japan at end of May 2007 after Nippon Steel, Sumitomo Metal Industries and Kobe Steel launched the large furnaces in April and May. Japanese major 4 integrated steel makers including JFE Steel expand the blast furnace when they reline the furnace to increase the high grade steel output and to improve the cost competitiveness under higher raw materials cost. Nippon Steel will expand the no.1 furnace at Oita works to 5,775 cubic meters in spring of 2009 after the quiet period of 2008. Expansion of blast furnace results in higher pig iron output along with better productivity and cost competitiveness. However, large blast furnace with more than 5,000 cubic meters requires higher operation technology and almost all world large furnaces concentrate in Japan. Japanese major steels try to expand the steel output capacity through conversion and adding new capacity for converters and continuous casters to meet higher pig iron output capacity. Japanese major 5 steels including Nisshin Steel increased the raw steel output to 86.45 million tonnes in fiscal 2006, which was 40% or 25 million tonnes higher than the recent bottom in 1998. They increased the output for 5 years in a row to meet higher steel demand worldwide. Japanese steel try to increase the output capacity of hot strip mills and plate mills to make more steel products with higher iron and steel making capacity. They already expand the capacity for roughing mills and reheat furnaces.