JFE Steel Increases Crude Steel Output to 7 Million tonnes for Oct-Dec

JFE Steel examines to increase crude steel output to over 7 million tonnes for October-December when steel export keeps steady and domestic demand is recovering from manufacturing industry such as automobile. The firm’s crude steel output increased by 33% to 6.8 million tonnes for July-September from April-June, up by 300,000 tonnes from the forecast announced at the end of July. The firm’s crude steel output would recover to 90% level compared with the peak of April-September 2008 if the production reaches 7 million tonnes.

The firm suspended 2 blast furnaces in Fukuyama and Kurashiki areas of West Japan iron works due to downturn steel demand in last autumn. The firm’s crude steel output hit record 30.52 million tonnes in fiscal 2007 and kept high level at 15.49 million tonnes for April-September 2008. The output decreased to 6.48 million tonnes for October-December 2008 and 4.97 million tonnes for January-March 2009.

The output was 5.12 million tonnes for April-June and 6.8 million tonnes for July-September. Domestic demand for crude steel is forecasted to increase by 3.7% to 25.28 million tonnes for October-December from July-September, according to Ministry of Economy, Trade & Industry. The demand might exceed 25 million tonnes for the first time in late 4 quarters.

The Ministry said domestic demand hasn’t recovered enough. JFE Steel keeps a blast furnace in Fukuyama area of West Japan iron works under suspension and started refinement of a blast furnace in Kurashiki area of West Japan iron works. JFE Steel’s executive said the firm hasn’t decided when to restart blast furnaces with an observation that domestic demand doesn’t recover soon from building materials and Chinese demand condition isn’t clear.