Kobe Steel Increases Crude Steel Output for Oct-Dec

Kobe Steel will increase the crude steel output to 80% of the capacity for October-December when Japanese automobile makers are increasing the output and the steel export is increasing. Because there is worry of dropped shipbuilding, building construction and steel export by weak overseas market price, the firm keeps cautious produce and sales stance with the demand trends.

The firm’ crude steel output was 1.25 million tonnes for April-June and is forecasted to be 1.58 million tonnes for July-September, which was 60% of the capacity for April-June and is forecasted to be 70% of the capacity for July-September, according to the firm’s announcement in July. However, the output is expected to increase for July-September more than the forecast in July.

Japanese automobile output is increasing thanks to stimulus measures of the government, which was 1,711 cars for April-June, and is expected to be 2.2 million cars for July-September and 2.5 million cars for October-December.

On the other hand, Japanese automobile, appliance makers and local users in Asia are increasing the order to Kobe Steel. The firm’s export rate increased to near 30% from near 20% for July-September from April-June, and is expected to keep about 30% for October-December.

The firm entertains to start the operation of one converter in Kakogawa iron works.