Japanese Crude Steel Output to Total Y/Y Lower in CY2011

Japan Iron & Steel Federation announced on Monday Japanese crude steel production decreased by 3.2% to 8.695 million tonnes in November from a year earlier, which represented year-to-year decrease for three months in a row. Integrated steel makers entered output reductions when steel export decreased mainly due to impacts of flood in Thailand. Compared with the previous month, the production decreased by 8.3%. The output volume hit the secondly lowest following 8.43 million tonnes in April.

Accumulative crude steel production is 99.196 million tonnes for January-November 2011, which is 1.2% lower than the output in the same period of 2010. The annual production for 2011 is estimated to total around 107.7 million tonnes,which is lower than 109.6 million tonnes in 2010.

In Japan, steel consumption is steady in car industry and is recovering in construction market. Meanwhile, Japanese steel export is decreasing due to ultra-high yen trend, weak Asian steel market price and negative effects of Thai flood.

In November, Japanese steel production at converter decreased by 5.8% to 6.493 million tonnes from a year earlier, which decreased for three months in a row. The electric funrnaces’ production increased by 5.2% to 2.202 million tonnes, which increased for five straight months. The carbon steel production decreased by 4.2% to 6.595 million tonnes while special steel production decreased by 0.3% to 2.101 million tonnes.

Japanese hot rolled steel production decreased by 2.0% to 7.765 million tonnes in November from a year earlier, among which carbon steel production decreased by 3.3% to 5.963 million tonnes while special steel increased by 2.6% to 1.802 million tonnes.

Among hot rolled carbon steel production, wide strip production decreased by 6.8% to 3.231 million tonnes in November from a year earlier, which decreased for ten straight months. The plate production decreased by 3.3% to 1.032 million tonnes, which decreased for five months. The concrete reinforcing steel bar production increased by 7.3% to 787,000 tonnes, which increased for five months. H-beam production increased by 6.7% to 274,000 tonnes, which increased for two months in a row.