Limited Power Supply Impacts Japan Steel Makers

Many of Japanese electric furnace carbon steel makers supplied power from Tokyo Electric Power Company (TEPCO) decided to stop the operations after TEPCO announced controlled blackout through Friday. However, the makers have to revise the production plans when TEPCO announced additional blackout plan through March 21. Tohoku Electric Power also plans controlled blackout and could keep the program through March 21. The limited power availability would impact on Japanese integrated steel makers. The electric furnace steel makers try to make revised production plan when the blackout would keep longer time.

TEPCO announced on Tuesday the firm plans controlled blackout through March 21 along with detailed plan for Wednesday. When the program would keep longer term, electric furnace carbon steel makers revise the production and sales plan. The makers simulate production pattern in productivity, timeframe and production grades and sizes based on the blackout would be implemented from 6:20 to 22:00 even during weekend.

Tokyo Steel Manufacturing and Mukoyama Industry plans to keep stopping the operations through Friday while Tokyo Kohtetsu also stops the operation. Mukoyama Industry planned maintenance outage from March 16-18 and now plans to operate from 22:00 to 6:00 on and after March 19. Other makers try to make rolling schedule to avoid the blackout timing. They anticipate they cannot meet delivery commitment for some grade and sizes of products. They will notify the buyers of the delay.

The blackout also impacts on operation of electric furnace special steel makers. Daido Steel basically stops the operation at Shibukawa plant and Oji plant in Gunma during the blackout. The firm will keep operation at Kawasaki plant and Kimitsu plant when TEPCO excludes the areas for the program but Daido Steel is willing to stop the operations depending on TEPCO’s request.

Hitachi Metals keeps operations at near the full capacity at Kumagaya plant in Saitama, Moka plant in Tochigi and the subsidiary, Auto-tech in Fukushima when the plants revised the production plan under the blackout program.

Mitsubishi Steel Mfg. tries to resume of some of the facilities at Utsunomiya plant in Tochigi. The firm will restart the operation under the blackout program. The firm also ordered home standby for all employees at Utsunomiya plant and Hirota plant in Fukushima under accident at Fukushima nuclear power plant while the firm tries to collect information restart the operations with safety.