Japan Raw Steel Output Hits 10 Years Low in Fiscal 2009

Japanese raw steel output decreased by 8.6% to 96.45 million tonnes in fiscal 2009 ended March 2010 from fiscal 2008, which decreased to less than 100 million tonnes for the first time in 10 years, announced by Japan Iron and Steel Federation on Monday. The output decreased for 2 years in a row.

The raw steel output decreased by 5.1% to 75.75 million tonnes for converters in fiscal 2009 from fiscal 2008 while the output decreased by 19.5% to 20.7 million tonnes for electric furnaces. The integrated steel makers increased the output in second half of fiscal 2009 due to the increasing export. On the other hand, the electric furnaces kept the production at low level and the electric furnaces’ production weight decreased by 2.9 percentage points to 21.5% of the national output. The carbon steel output decreased by 6.8% to 77.59 million tonnes while special steel decreased by 15.2% to 18.86 million tonnes.

The hot rolled products output decreased by 8.6% to 85.55 million tonnes in fiscal 2009 from fiscal 2008, which represented the lowest volume since fiscal 1971.

The raw steel output increased by 63.4% to 9.34 million tonnes in March from a year earlier, which increased for 5 months in a row. The output was the highest level since November 2008 when the makers significantly reduced the output.