Japan Major Steel Makers Fix Electricity Saving Measures

Japanese major steel makers fixed electricity saving measures for this summer (July-September). Steel makers target power saving by 25% year-on-year though Japanese government lowered the reduction goal to 15% for both enterprises and residents. Nippon Steel will concentrate scheduled repairs of Kimitsu works in summer. Special steel makers such as Daido Steel will shift operations in night and introduce privately-owned electrical power facilities. Meanwhile, power saving measures may decelerate operations of manufacturing industry such for automobiles and electric appliances. Steel makers are afraid of the demand decline rather than self output cut.

Japanese government decided to lower electricity saving goal in TEPCO’s service area to 15% on April 28 from previous 25% since TEPCO is trying to increase power supply capacity. However, steel industry plans to keep electricity saving target by 25% and supports power supply by joint thermal power plants and independent power production.

Among special steel makers, Daido Steel introduced additional privately-owned electrical power facilities at Shibukawa plant and decided to operate the melt process in night. Hitachi Metals will shift day operations of Moka and Kumagaya plants to night and partially transfer operations to other plants in West Japan. Carbon steel electric furnace steel makers are likely to clear 25% power saving by usual late-evening operations and lengthening of scheduled repair terms.

Power saving may cause lower steel production. Japanese crude steel output decreased by 700,000 tonnes in March against the estimated volume according to Ministry of Economy, Trade and Industry. For April-June, automobile production would maintain very low. Steel output might decrease by over 1 million tonnes for April-June.