JFE Steel Continues Output Cut of Gas Pipe for Jul-Sep

JFE Steel, Japanese largest gas pipe maker, continues to reduce gas pipe production for July-September in balance with the actual demand level. The production volume will decrease by 40% for July-September compared with April-September 2008 before world financial crisis.

The firm has adjusted gas pipe output volume with the actual demand level since the last half of fiscal 2008 (October 2008-March 2009). In fiscal 2009, the firm shrank the production by maximum 60% compared with April-September 2008. Gas pipe inventory at the makers and the dealers recently halved from the peak level as a result. The inventory is even short for some sizes.

In fiscal 2010, gas pipe demand is gradually increasing due to more building construction projects around Tokyo than expected and dealers’ restocking for lacking sizes. However, the market recovery is not strong. JFE Steel reduced gas pipe production by 40% for April-June compared with April-September 2008 and continues the same level output cut for July-September.