Electric Furnaces in Osaka Continue Shape Steel Output Reduction in May

Electric furnace steel makers around Osaka continue output reduction of shape steel in May. Especially Sumikin Steel & Shapes will suspend the production through almost all of May due to extended maintenance of the rolling mills. Electric furnace steel makers adjust the supply volume along with the current low demand and encourage the market price improvement.

Yamato Steel reduced H-beam output by around 10% in April compared with March. The output reduction was near 40% against the capacity. Yamato Steel increased H-beam selling price by 3,000 yen per tonne for dealers effective for April shipment. H-beam orders slightly decreased from distributors in April and then the firm continued the output reduction. The production volume is unlikely to increase in May from April since the firm continues the supply control along with the order level.

Sumikin Steel & Shapes implemented renewal of furnace shell and regular maintenance of rolling mill in April. The firm’s H-beam output almost halved against the capacity in April. The rolling mill maintenance is likely to take additional 4 weeks. Thus the production would decrease more largely in May. Godo Steel seems to have reduced H-beam and other shape steel production by around 10% at Osaka plant in April, sequentially from March. The firm would continue the same-range output reduction in May.

Osaka Steel reduced shape steel output by around 40% against the capacity in April to penetrate the latest price hike by 3,000 yen per tonne effective for April order. The firm plans to continue the same-range output control in May.