Japan Crude Steel Output Decreases by 6.3% in April

Japanese crude steel output decreased by 6.3% to 8.419 million tonnes in April from a year earlier, which represented year-to-year minus for 2 months in a row, according to Japan Iron & Steel Federation. The average output per day decreased to 280,600 tonnes in April from 294,000 tonnes in March, which became below 300,000 tonnes for 2 months in a row. Productive activities of Japanese manufacturing industry grew stagnant and steel production facilities suffered damages from Japan Earthquake.

Converter steel production decreased by 9.6% to 6.329 million tonnes, year-to-year minus for 2 consecutive months. Electric furnace steel production increased by 5.1% to 2.091 million tonnes, year-to-year plus for 17 straight months. By steel grade, carbon steel decreased by 4.9% to 6.669 million tonnes and special steel decreased by 11.3% to 1.75 million tonnes. Both carbon steel and special steel showed year-to-year minus for 2 months in a row.

By items, hot rolled steel products decreased by 5.2% to 7.46 million tonnes, year-to-year minus for 2 consecutive months. Carbon steel products decreased by 4.3% to 5.988 million tonnes. Long products increased by 12.9% to 1.63 million tonnes while flat products decreased by 9.9% to 4.277 million tonnes. Special steel products decreased by 8.7% to 1.473 million tonnes.

In April, integrated steel makers and special steel makers were forced to decrease the supply mainly for manufacturing industry. On the other hand, electric furnace carbon steel makers increased the output of long products, rebar or H-beam since they started stocks before output reduction in summer and prepared for restorative demand.

Japanese crude steel output plan is estimated to total 26.89 million tonnes for April-June according to Ministry of Economy, Trade and Industry. Actual output was below 9 million tonnes in April.