Japan 5 Steels’ Crude Steel Output Recovers Peak Level in F2010

Crude steel production by Japanese 5 integrated steel makers is expected to total 87.4 million tonnes in fiscal 2010 started in April, increasing by 16.7% or 12.5 million tonnes from fiscal 2009. The production would approach the recent peak level of fiscal 2007. The integrated steels forecast domestic demand maintains weak at around 60 million tonnes in fiscal 2010 and plan to keep the export volume almost as much as in the second half of fiscal 2009.

The 5 steels’ crude steel production decreased by 5.2% or 4 million tonnes to 74.87 million tonnes in fiscal 2009 from fiscal 2008. The production dropped by 14.5 million tonnes from fiscal 2007. In the second half of fiscal 2009, each steel maker increased the export to Asian market. Meanwhile, in Japanese market, steel demand partially recovered from manufacturing industry such as automobile makers.

In fiscal 2010, steel demand is expected to maintain upward in emerging countries while recover in Europe and USA. Global steel demand is forecasted to increase by 10.7% to 1.24 billion tonnes in CY2010 from CY2009, according to World Steel Association. Chinese and South Korean steel makers will start operations of new integrated steel plants but increasing demand could absorb expanding steel output during the first 6 months of CY2010.

Nippon Steel expects the firm’s crude steel at approximately 32 million tonnes in fiscal 2010, increasing by 16.4% from fiscal 2009. JFE Steel’s output is estimated at around 30 million tonnes, increasing by 16.1%. Sumitomo Metal Industries forecasts the output increases by 17.6% to 113.7 million tonnes while Kobe Steel estimates the output increases by 17.2% to 7.6-7.8 million tonnes. Nisshin Steel’s production would increases by 20.5% to 4 million tonnes.