Japan Raw Steel Output Records Widest Drop in F2008

Japanese raw steel output decreased by 13.2% to 105.5 million tonnes in fiscal 2008 ended March 2009 from fiscal 2007, announced by Japan Iron and Steel Federation on Monday. The production decreased for the first time in 3 years. The output decreased to less than 110 million tonnes for the first time in 6 years and hit the lowest level after 102.06 million tonnes in fiscal 2001. The year to year drop was the largest in the record since fiscal 1948 while the output dropped by 11.5% in fiscal 1998.

The hot rolled steel production decreased by 14.3% to 93.61 million tonnes in fiscal 2008 from fiscal 2007, which was the first drop in 3 years. The production decreased to less than 100 million tonnes for the first time in 6 years and hit the lowest level after 90.93 million tonnes in fiscal 1999. The carbon steel plate output increased by 1.6% to 13.6 million tonnes, which represented 5th high in the record.

The raw steel output decreased sharply in second half of fiscal 2008 due to very slow demand while the output was historical high in the first half year. The output was only 44 million tonnes in the second half, which was 28.5% lower than the first half. The output decreased by 42.9% to 17.6 million tonnes in January-March 2009 from same period of 2008, which was the lowest quarterly production after 17.51 million tonnes in October-December 1968.

The raw steel output decreased by 46.7% to 5.74 million tonnes in March from a year earlier, which decreased for 6 months in a row. The decrease was the widest drop in the record since 1949 topping 44.2% drop in February 2009. The daily output decreased to 185,200 tonnes from 195,700 tonnes in February. The electric furnace steel output hit the lowest level since August 1975 while the converter steel output decreased for 6 months in a row.