Japan Crude Steel Output Would Drop to 106 MT through F2008

Japanese crude steel output is expected to decrease by 15 million tonnes to around 106 million tonnes in fiscal 2008 ending March 2009. The crude steel output decreased by 44.2% to 5.475 million tonnes in February 2009 from a year earlier, according to Japan Iron and Steel Federation. The output decreased by 9.9% to 99.762 million tonnes for 11 months from April 2008 to February 2009 compared with the same period of previous year. The output is likely to become the level as low as fiscal 2001 of 102 million tonnes.

The output represented year-on-year decrease for 5 consecutive months and hit the lowest level since June 1968. The minus range in February was widest to exceed the rate of 37.8% in January 2009.

The output of converter steel decreased by 42.7% to 4.176 million tonnes in February from a year earlier, which decreased for 5 consecutive months and hit the lowest since November 1968. The output of electric furnace steel decreased by 48.4% to 1.299 million tonnes, which showed tear-on-year minus for 6 straight months and hit the lowest since August 1975.

Common crude steel output decreased by 39.8% to 4.565 million tonnes, which represented year-on-year down for 5 consecutive months. Special crude steel output decreased by 59.2% to 909,000 tonnes, down year-on-year for 4 straight months.

Hot rolled steel output including common and special steel decreased by 47% to 4.746 million tonnes, down year-on-year for 5 consecutive months. Common steel output decreased by 42.7% to 4.062 million tonnes. Long products output decreased by 33.1% to 1.265 million tonnes. Flat steel output decreased by 46.3% to 2.757 million tonnes.