Shape Steel Makers around Osaka Continue Output Cut in March

Electric furnace steel makers around Osaka continue output reduction of shape steel in March. The production cut will be 30-50% at each maker. Shape steel inventories are low at wholesalers while actual demand maintains weak. Electric furnaces regulate product supply to accelerate price hike. They are likely to continue production cut in or after April.

Yamato Steel implemented refinement of H-beam rolling line from November 2010 to January 2011. As a result, the firm’s H-beam production decreased by 40-50% during the term. In March, the firm plans to increase H-beam production as much as in October 2010. However, the output level is still downed by 30%.

Sumikin Steel & Shapes continued H-beam production cut by 35% in February. The firm plans to widen the output cut range to 40-50% in March in order to follow rolling margin hike by 3,000 yen per tonne. The firm also continues order receipt regulation from market dealers.

Osaka Steel reduced angle and channel production by 40-50% in January and February. The firm will continue output cut by 50% and order receipt regulation along with the output level in March. Himeji works of JFE Bars & Shapes continued production cut of angle and channel by more than 40% in February. Himeji works will continue same level output reduction in March.