Japan Galvanizing Steel Output Drops by 0.8% in 1H

Japanese galvanizing flat steel output decreased by 0.8% to 7.07 million tonnes in the first half to September from same period of 2005. Domestic integrated steel makers kept full capacity operations to meet higher demand for automobile while rerollers, which serve mainly for construction market, reduced the output and market share.

The no.1 supplier of Nippon Steel increased the output by 4.8% in the first half from same period of 2005 increasing the market share by 1.7 percentage points to 32.3%. The firm is expected to expand the share after the firm commissioned continuous galvanizing lines at Kimitsu works in June, at Nagoya works in September and Hirohata works in December.

The no.2 of JFE Steel reduced the output by 1.7% in the first half from same period of 2005 reducing the share by 0.3 points to 24.3%. The firm will increase the output in the second half under the plan to start operation of new continuous galvanizing line at Fukuyama of West Japan works in early 2007.

The no.3 Nisshin Steel reduced the output by 1.6% in the first half from same period of 2005 due to water supply trouble at Kure works decreasing the share by 1.6 points to 12.8%. Sumitomo Metals reduced the output by 0.8% with same share with 9.2%. The firm will increase the output in the second half after new line starts the operation at Kashima works in December. Kobe Steel’s output increased by 0.6% increasing the share by 0.1 points to 7.8%.