Japan Electrode Shipment Drops by 4% in 2008

Japanese electrode shipment for domestic electric furnaces decreased by 4% to 58,068 tonnes through 2008 compared with 2007, according to Japan Carbon Association. The shipment decreased for the first time since 2005. The first 6-month shipment increased by 6% to 31,943 tonnes compared with the same period of 2007 while the last-half-year shipment dropped by 14% to 26,125 tonnes year-on-year. Electrode shipment for export decreased by 2% to 113,439 tonnes through 2008 from 2007. The total shipment would continue to decrease in 2009 when Japanese electric furnace steel makers are largely reducing their common steel and special steel output by over 50% year-on-year.

Japanese electrode output decreased by 3% to 175,004 tonnes through 2008 from 2007. The output increased by 3% year-no-year for January-June while decreased by 8% year-on-year for July-December. Electric furnace steel makers reduced electrode purchase. On the other hand, electrode output for nonferrous metal refiners increased by 57% through 2008 from 2007. Electrode import volume increased by 25% to 15,040 tonnes through 2008 from 2007.

The association said electrode demand condition is unforeseeable for both domestic market and export in 2009 when users keep output reduction. Crude steel output by electric furnaces decreased by 48.4% to 1.299 million tonnes in February from a year earlier. Electrode makers are adjusting their production and sales to the actual demand level when needle coke price stays high and electrode makers’ profits are impacted.