Nippon Steel to Stop Relining BF 50 Days Earlier

Nippon Steel announced on Wednesday the firm blows out No.2 blast furnace at Kimitsu works on December 1 or 50 days ahead of original schedule for planned expansion and relining work in mid-January 2012. The firm reduces the production under slow steel demand when negative impact of Thai flood would be larger than originally estimated around 300,000 tonnes and world economy slows. The firm decided to adjust the production in efficient manner when the firm now expects the raw steel demand will decrease by more than 300,000 tonnes.

The firm expected the raw steel output is around 15.5 million tonnes in second half of fiscal 2011 ending March 2012 compared with 15.53 million tonnes in the first half as of late October. The firm expected around 300,000 tonnes of demand decrease due to Thai flood impacts.

The firm recognizes Thai flood impact expands more than expected and world steel demand slows under European financial crisis and inflation fight by China and emerging countries. The firm now expects the raw steel demand decreases by around 300,000 tonnes than expectation in late October.

The firm decided to stop operation of No.2 blast furnace of Kimitsu earlier than original plan for better efficiency and operation cost than current 9 blast furnace operation. The firm operates No.2 blast furnace of Kimitsu at near 2 tonnes per each cubic meter of inner volume. The 50 days earlier stoppage represents around 250,000 tonnes of pig iron production cut.

The firm still keeps the planned 15.5 million tonnes of raw steel output in second half of fiscal 2011 when the demand would recover after confusion of Thai flood along with positive economy situation change.

The firm expands No.2 blast furnace of Kimitsu from 3,273 cubic meters of inner volume to 4,500 cubic meters for around 40 billion yen to improve competitiveness in hot metal process. The firm still plans to start the relining works on January 18, 2012 and complete on May 16 firing on May 17.