Japan 5 Integrated Steels’ Output to Increase in 2H of F2011

Japanese 5 integrated steel makers would actively increase raw steel output for second half of fiscal 2011 ending March 2012. The integrated steels’ output could be 85 million tonnes for fiscal 2011 as fiscal 2010 when the makers could increase the output in the second half to cover lower production in the first half under recovering demand for automobile.

Japanese 5 integrated steels’ raw steel output decreased by 9.2% to 6.337 million tonnes in April from a year earlier, which represents annualized 77 million tonnes. The output significantly decreased at Sumitomo Metal Industries’ Kashima steel works due to the quake damage. The other 4 makers also decreased the output.

Nippon Steel’s vice president, Kozo Uchida said the firm’s output for April-June would be lower than year earlier level of 8 million tonnes and the firm will continue operation cautiously for July-September not to increase overstock in the market. For second half of fiscal 2011, the firm tries to increase the production than the first half to 16.3 million tonnes level as second half of fiscal 2010 when the demand increases for automobile and rebuilding of the quake damaged area.