Normalizing East Japan Steel Operations

Japanese eastern parts of areas keep trying to rebuild community from the damage by the major earthquake. Steel demand for the rebuilding will increase when many of the main roads resume the transport function. However, the steel plants in eastern Japan are still under limited operation due to limited availability of power supply due to heavy damage on nuclear power stations.

Nippon Steel, JFE Steel and Sumitomo Metal Industries resumed blowing to blast furnaces at Kimitsu, East Japan and Kashima works. However, they control the production and shipment to save the electricity consumption.

Electric furnace steel makers in eastern Japan reduce the output by maximum 30% under the limited availability of power. Asahi Industries reduced the operation to 70% level while the products inventory decreased to a half of normal level. Itoh Iron & Steel operates the Tsukuba plant at 70-80% of normal level. Godo Steel’s Funabashi plant and Tokyo Tekko’s headquarters plant operate only in night time to avoid operation in blackout program. Kanto Steel’s operation is around 90% of normal level. Jonan Steel operates at 80-90% level.

JFE Bars & Shapes’ Sendai plant keeps suspending the operation while the firm asked JFE Steel and special steel makers to make products for the company. Daido Steel’s Shibukawa plant has no damage from the quake while the firm stops operation at Shibukawa and Oji plants during the blackout. Mitsubishi Steel MFG.’s Utsunomiya plant resumed the operation on March 22 while the firm evacuates all employees of Utsunomiya and Hirota plants due to nuclear power accident. Hitachi Metals keeps near full capacity operations while the firm expects the blackout program impacts on operations in eastern Japan.

Nippon Steel & Sumikin Stainless Steel (NSSC) resumes the operations at Kashima plants step by step while the firm shifts the part of the production to Hikari plant and asked to other makers including Nisshin Steel for production support. Nippon Yakin Kogyo operates at energy saving mode while the firm eyes alternative actions including asking production support to other makers.

Resuming operation of major roads including highways also supports the steel makers’ supply while gasoline shortage continues. Ocean transport to access damaged areas is still limited mainly for emergency cargoes. The Nuclear accident also impacts on the ocean transport when some steel shipping vessels detour to Japan Sea from Pacific coast to avoid radiation issue.