Japanese major 5 steel makers’ raw steel production decreased by 34.9% to 5.085 million tonnes in January from a year earlier, which was the lowest level since June 1999 and deceased for 4 months in a row. The production decreased by near 40% for Nippon Steel and JFE Steel while the production cut increased for Kobe Steel, Sumitomo Metal Industries and Nisshin Steel.
The makers expand the production cut when the steel demand drops sharply under worldwide slow demand. The production cut of the 5 makers increased to 34.9% in January from a year earlier from 23.9% in December, 10.7% in November and 0.4% in October. Nippon Steel’s production decreased by 37.1% to 1.839 million tonnes in January from a year earlier. The firm stopped no.1 blast furnace at Oita works on February 1, which was stopped one month ahead of original schedule for relining, while the firm will idle no.2 furnace at Kimitsu in late February to reduce output. JFE Steel’s production decreased by 38.9% to 1.603 million tonnes in January from a year earlier. The firm also stopped no.3 blast furnace at Kurashiki area of West Japan works in January.Japan Steel Scrap Composite Prices (Sangyo Press)
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