Japan Raw Steel Output Rises by 8% in October

Japanese raw steel output increased by 8% to 9.508 million tonnes in October from a year earlier, which increased for 12 months in a row and was more than 9 million tonnes for 2 months in a row, announced by Japan Iron and Steel Federation on Friday. The daily output was 306,700 tonnes, which was less than 307,900 tonnes in September, but the output represented 28.2 million tonnes in the quarterly. However, the hot rolled wide strip production decreased for the first time in a year under adjustment in China and higher yen rate. The domestic production could decrease when the demand concern increases at home and abroad.

The converter steel output increased by 5.2% to 7.34 million tonnes in October from a year earlier. The electric furnace steel output increased by 19% to 2.168 million tonnes. The daily output was 236,800 tonnes for converter steel and 69,900 tonnes for electric furnace steel compared with 239,000 tonnes and 68,800 tonnes in September respectively.

The production of hot rolled steel products increased by 6% to 8.205 million tonnes in October from a year earlier. The output of carbon steel products increased by 1.9% to 6.416 million tonnes. The output of carbon steel long products decreased by 2.1% to 1.501 million tonnes while the output of carbon flat steel increased by 2.5% to 4.836 million tonnes. The largest volume item of hot rolled wide strip’s output decreased by 0.4% to 3.702 million tonnes. The plate output increased by 15.5% to 1.078 million tonnes, which increased for 8 months in a row. The output of special steel hot rolled products increased by 23.7% to 1.789 million tonnes, which increased for 11 months in a row.

METI announced in late October Japanese steel makers plan to make 28.2 million tonnes of raw steel in October-December compared with 26.98 million tonnes of demand estimated by METI. Some industry interests increase the concern for overproduction when the export steel market is in price slump and the domestic steel demand is decreasing partly due to lower automobile sales after end of subsidy for eco-friendly car.