Japan 5 Major Integrated Steels to Increase Output by 2.5% in F2007

Japanese 5 major integrated steel makers’ raw steel output is expected to increase to approximately 88.05 million tonnes per annum in fiscal 2007 started April, up by 2.15 million tonnes or 2.5% compared with fiscal 2006. The annual output would exceed the record in fiscal 1990 by 10 million tonnes and the recent bottom in fiscal 1998 by more than 25 million tonnes. The integrated steels will continue full operation to meet strong demand for high grade steel from domestic manufacturing industries such as automakers or shipbuilders. The steel makers have advanced capital expenditure for expansion of blast furnace volume or steel making equipment capacity.Nippon Steel plans to increase crude steel output to approximately 32.6 million tonnes at the parent in fiscal 2007, up by 1 million tonnes from fiscal 2006, and to approximately 36 million tonnes as a consolidated gross, up by more than 1 million tonnes. The firm expects capacity expansion such for no.5 continuous casting equipment at Kimitsu works, a blast furnace and a new steel converter at Nagoya works, could contribute to the volume up of crude steel output.JFE Steel expects to increase crude steel output to 30 million tonnes at the parent in fiscal 2007, up by 960,000 tonnes from fiscal 2006, while the consolidated gross will increase by 1 million tonnes to 32.83 million tonnes when the affiliated electric furnace steel makers are expected to keep the output volume almost flat as the previous year. JFE Steel has expanded its 5 blast furnaces since 2002. The capacity expansion is expected to contribute to more crude steel production.Sumitomo Metal Industries plans annual crude steel output of about 13.4 million tonnes in fiscal 2007, increasing slightly from fiscal 2006, including major 3 affiliates. Kobe Steel plans crude steel output of about 8 million tonnes at the parent in fiscal 2007, up by 170,000 tonnes over the previous year.