Japan Electric Furnace Steel Output Increases by 7.1% in September

Japanese crude steel output of electric furnace steel makers increased by 7.1% to 1.82 million tonnes in September from August, which increased for 2 months in a row. The carbon steel output increased for 2 months in a row while the special steel output showed month-to-month increase for 7 straight months due to the recovery in automobile demand. The carbon and special steels output recorded the monthly largest volume in September. However, the carbon steel oversupply is concerned.

The crude steel output of electric furnace carbon steels increased by 4.7% to 1.33 million tonnes in September from August. The output increased by 33% compared with January, the recent bottom. The users seemed to increase order in August and September before price hike. The concrete reinforcing steel bar output increased by 3.2% to 761,857 tonnes in September from a month ago while the steel beam output decreased by 7.7% to 243,414 tonnes.

The special steel output of electric furnace steels increased by 12.4% to 496,823 tonnes in September from August. The output was more than double compared with February. The special steel demand increased when automobile and home electronics sales recovered due to the stimulus package. The special steel output is recovering to the level before recession and is expected to be more than 500,000 tonnes in October.