Japan Major 5 Steels’ Raw Steel Output to Drop by 5% in F2009

Japanese major 5 steel makers’ raw steel output will reach 75.2 million tonnes in fiscal 2009 ending March 2010, which is 5% lower than fiscal 2008. The production increases to 42.27 million tonnes in the second half year under higher demand for automobile and export while the output was only 32.29 million tonnes in the first half, which was 27% lower than same period of fiscal 2008. The daily output in January-March is more than 95% of the peak.

Nippon Steel plans 27.6 million tonnes of raw steel production in fiscal 2009, which is 3.5% lower than fiscal 2008. JFE Steel’s output decreases by 2% to 26.01 million tonnes. The output decreases by 9.1% to 11.7 million tonnes for Sumitomo Metal Industries, by 8.7% to 6.6 million tonnes for Kobe Steel and by 9.8% to 3.32 million tonnes for Nisshin Steel.

Nippon Steel restarted a relined furnace at Oita works in August 2009 and an idled furnace at Kimitsu works in October operating all 9 furnaces. The firm plans 8 million tonnes of raw steel output in January-March, which represents around 97% of the peak level. JFE Steel will restart a relining furnace at Kurashiki area of West Japan works on February 11 operating 8 furnaces of total 9 furnaces. The firm plans 7.05 million tonnes of output in January-March, which represents over 90% of the peak.

The operation rate in January-March is over 95% of the peak for Sumitomo Metals and around 90% of the peak for Kobe Steel and Nisshin Steel.