Japan Raw Steel Output Drops by 1.2% in 2008

Japanese raw steel production decreased by 1.2% to 118.74 million tonnes in 2008 from 2007, which was the third record high while the output hit the first drop in 3 years and decreased to 120 million tonnes. The output decreased by 27.9% to 7.48 million tonnes in December from a year earlier, which decreased for 3 months in a row and hit the lowest monthly level since April 1999. The production drop in December was the widest since January 1949 due to severe slump of steel demand after financial crisis.

The production decreased slightly to 89.24 million tonnes for converter steel and by 4.7% to 29.5 million tonnes for electric furnace in 2008 from 2007. The electric furnace steel rate decreased by 1 percentage point to 24.8%. The carbon steel production decreased by 1.6% to 92.57 million tonnes while the special steel output increased by 0.5% to 26.17 million tonnes, which renewed the record for 7 years in a row. The production of hot rolled steel products decreased by 2% to 106.09 million tonnes in 2008 from 2007 while the level was the second high after 2007. The production of special steel products renewed the record high for 7 years in a row. The production was the second high for wide strip coil and galvanizing steel.

The raw steel production decreased by 23.8% to 5.91 million tonnes for converter steel in December from a year earlier, which decreased for 3 months in a row. The electric furnace steel production decreased by 40% to 1.57 million tonnes, which decreased for 4 months in a row. The carbon steel production decreased by 27.9% to 5.94 million tonnes, which decreased for 3 months in a row, while the special steel output decreased by 28% to 1.54 million tonnes, which decreased for 2 months in a row.

The hot rolled steel products output decreased by 31.1% to 6.29 million tonnes in December from a year earlier, which decreased for 3 months in a row and to the lowest level since April 1972. The production decreased by 36% to 1.3 million tonnes, which decreased for 6 months in a row, and by 30.8% to 3.62 million tonnes, which decreased for 3 months in a row.

The raw steel production decreased by 14.5% to 26.4 million tonnes in October-December from same period of 2007, which was the first decrease to less than 30 million tonnes in 5 quarters.