Japan Electric Furnace Steels’ Output Hits 4-Month High

Japanese crude steel output by electric furnace steel makers decreased by 43.6% to 1.487 million tonnes in April from a year earlier, which showed year-to-year decreased for 8 months in a row, according to Non-Integrated Steel Producers’ Association. However, the output increased by 15.6% from March when steel inventory adjustment progressed and automobile production increased. As a result, the electric furnace steel output recovered 1.4 million tonnes for the first time in 4 months. Some of electric furnace steels begin to increase the production when the demand bottomed out in January-March.

The crude steel output by electric furnace carbon steel makers increased by 13.9% to 1.199 million tonnes in April from March though the output decreased by 37.5% from a year earlier. The inventory adjustment progressed when the inventory rate of concrete reinforcing bar was 73.9%. The crude steel output increased to 1.081 million tonnes in February from 0.998 million tonnes in January while the output recovered 1.052 million tonnes in March. Some of the dealers started to restock.

The crude steel output by electric furnace special steel makers was 287,000 tonnes in April, which showed a 22.8% increase from March while it decreased by 60.0% from a year earlier. The production increased from March when automobile makers increased the production while the demand for construction machinery and general machine remained stagnant.

The demand for electric furnace steel shows a sign to bottom out. The output is likely to increase gradually.