Japan Major 5 Steels’ Raw Steel Output Drops by 5.0% in Fiscal 2009

Japanese raw steel output of 5 major integrated steel makers decreased by 5.0% to 75.39 million tonnes in fiscal 2009 ended March 2010 from the previous fiscal, which was below 80 million tonnes for 2 consecutive years. Nippon Steel and JFE Steel decreased the output by 3.3% and 2.7% in fiscal 2009 from fiscal 2008. These makers significantly reduced the output in fiscal 2008 after financial crisis and thus the range of drop was narrow. On the other hand, the output of Sumitomo Metal Industries, Kobe Steel and Nisshin Steel decreased by near 10% when the inventory adjustment by 3 makers required substantial time.

The output of Nippon Steel was 28.03 million tonnes in fiscal 2009, which was below 30 million tonnes for 2 consecutive years. Nippon Steel fell into trouble in Oita Iron and Kimitsu Works, but make up these troubles by high efficiency operation at other works and maintained top share.

JFE Steel’ output decreased by 2.7% to 25.83 million tonnes in fiscal 2009 from the previous fiscal, which marked the record low since the establishment of the firm in fiscal 2003. However, the output increased to more than 30 million tonnes per annual rate in March, despite an idled blast furnace.

Sumitomo Metals’ output decreased to 11.65 million tonnes, down by 9.5%. Kobe Steel decreased the output by 9.2% to 6.57 million tonnes. Nisshin Steel decreased the output by 9.8% to 3.32 million tonnes.

Five makers’ output increased to 7.36 million tonnes by 65.2% in March from a year earlier, which recovered 92% of March 2008 when the firms’ output was firm.

The makers’ pig iron output decreased to 72.53 million tonnes by 7.6% in fiscal 2009 from fiscal 2008, which was the record low since 1971.