Japan Raw Steel Output Rises by 0.4% in January-June

Japanese raw steel output increased by 0.4% to 56.98 million tonnes in January-June from same period of 2005, announced by Japan Iron and Steel Federation on Thursday. The output was 4th high after 57.74 million tonnes in January-June 1980. The converter steel output decreased only by 0.5% due to firm demand for manufacturers at home and abroad while integrated steel makers reduced the output to reduce domestic sheet steel inventory and for export shipment. The electric furnace steel output increased by 3.1% due to higher output by special steel makers. The output is expected to keep high after July when the export demand recovers while domestic integrated steels keep cautious for potential overstock in the domestic market.

The steel output was 41.98 million tonnes for converter and 15 million tonnes for electric furnace in January-June. The carbon steel output was flat at 44.29 million tonnes from same period of 2005 while the special steel output increased by 2.2% to 12.68 million tonnes. The national raw steel output was flat at 28.97 million tonnes in April-June from same period of 2005. The converter steel output decreased by 1.0% to 21.08 million tonnes while the electric furnace steel output increased by 2.9% to 7.88 million tonnes. The carbon steel output decreased by 0.2% to 22.62 million tonnes while the special steel output increased by 0.9% to 6.34 million tonnes. The special steel output was record both in April-June and January-June.

The hot rolled steel products output including special steel decreased by 1.6% to 50.87 million tonnes in January-June from same period of 2005. The carbon steel output decreased by 2.0% to 40.51 million tonnes while the special steel output increased by 0.1% to record 10.36 million tonnes.

The national raw steel output increased by 2.5% to 9.69 million tonnes in June from a year earlier, which was first increase in 3 months. The converter steel output increased by 1.3% to 7.07 million tonnes and the electric furnace steel output increased by 6.0% to 2.61 million tonnes. The converter steel output increased for the first time in 3 months and the electric furnace steel increased for 7 months in a row.