Japan Raw Steel Output Drops by 3.8% in 1H F2011

Japanese raw steel output decreased by 3.8% to 53.31 million tonnes in April-September from same period of 2010, announced by Japan Iron and Steel Federation on Wednesday. The steel makers reduced the output due to slower demand and limited power availability after the major earthquake while the export was strong in early stage of the first half. The quarterly output decreased by 6.1% to 26.37 million tonnes in April-June and by 1.5% to 26.94 million tonnes from same period of 2010.

The domestic steel demand is expected to recover in second half of fiscal 2011 ending March 2012 due to improving automobile production and increasing demand for rebuilding activity for the quake damage. The export condition is severe under weak Asian market price and high yen rate. Japanese raw steel output could be lower than same period of fiscal 2010 under uncertain factors including flood damage in Thailand and slower economy growth in USA, Europe and China.

The converter steel output decreased by 5.1% to 41.06 million tonnes in April-September from same period of 2010. The electric furnace steel output increased by 0.8% to 12.25 million tonnes when the makers improved the operation to meet better demand for automobile and construction applications.

The carbon steel output decreased by 3.5% to 41.53 million tonne in April-September from same period of 2010. The special steel output decreased by 5.0% to 11.78 million tonnes. The output of hot rolled steel products decreased by 4.8% to 46.82 million tonnes.

The raw steel output decreased by 3.8% to 8.88 million tonnes in September from a year earlier. The daily output increased by 3.0% to 296,100 tonnes from August. The converter steel output decreased by 5.1% to 6.8 million tonnes from a year earlier while the electric furnace steel output increased by 0.7% to 2.08 million tonnes. The output decreased by 4.8% to 6.78 million tonnes for carbon steel and by 0.6% to 2.1 million tonnes for special steel.

The output of hot rolled products decreased by 6.0% to 7.82 million tonnes in September from a year earlier. The output decreased by 6.4% to 6.11 million tonnes for carbon steel and by 4.6% to 1.71 million tonnes for special steel.