Japan Integrated Steels Increase Crude Steel Output to 22.2MT for Jul-Sep

Japanese 5 integrated steel makers are expected to increase their non-consolidated crude steel output by 17.5% to 22.2 million tonnes for July-September 2010 from the corresponding period of 2009. The production would increase by 3% compared with April-June 2010 and approach the recent peak at 22.74 million tonnes in July-September 2008. Steel makers’ export is likely to slow down due to Asian market’s confusion caused by Chinese oversupply while steel shipment could be supported by demand from Japanese domestic manufactures.

Nippon Steel plans to increase crude steel production by 5% to 8.4 million tonnes for July-September compared with April-June while JFE Steel to increase by 4% to 7.54 million tonnes. They would keep almost full operations. Sumitomo Metal Industries, Kobe Steel and Nisshin Steel are expected to maintain the output level almost as same as in April-June.

An official of Japanese integrated steel maker said Chinese steel demand is still strong and expected to recover early if local steel makers’ inventory adjustment steadily progresses. The source suggested local steel makers would reduce their outputs when iron ore and coal prices jumped up for July-September. Meanwhile, raw material prices are possible to downturn for October-December and, consequently, inventory adjustment may require time.