Japan Special Steel Makers to Increase Output in June

Japanese integrated steel makers and special steel makers plan to increase output of special steel products in June. Automotive component makers increased orders for special steel products in May when automakers’ operations are recovering from the major disaster rather rapidly than scheduled. Meanwhile, electric power supply will be regulated in summer Special steel makers are increasing the output before July-September. Japanese automakers plan to increase car production for October-March to cover operation down during the first half of fiscal 2011.

Daido Steel’s production decreased by about 10-20% after mega earthquake in March, and in April due to scheduled repair, while the output rebounded to the pre-disaster level in May along slight recovery of car production. The firm would increase the output in June before electric power supply regulation for July-September.

Aichi Steel’s production decreased by 10-20% in April. The firm is increasing the output gradually and starts operation of a new continuous casting line in June.

At the end of April, Sanyo Special Steel estimated the firm’s output would decrease by 20-30% in the first six months (April-September) of fiscal 2011 compared with the previous six months. Actually the firm continued full operation in the last half of May. The firm will maintain full operation in and after June when market dealers are re-increasing inventories.

Hitachi Metals maintained almost full operation of Yasugi plant, the main production base of special steel products, during April-May. Meanwhile, operations lowered at some plants around Tokyo due to TEPCO’s planned power outage. The firm expects the operation level could be sustained in June.

Mitsubishi Steel MFG kept the total output level for April-May by increasing the export though domestic demand declined. The firm forecasts the output level could be maintained in and after June mainly for construction machines.

Japanese total output of special steel products decreased by 13% to 1.47 million tonnes in April from March and represented 8.7% year-to-year down, according to Japan Iron & Steel Federation. Japanese integrated steel makers moved to output adjustment early with a concern on excess market inventory.