Mr. Hiroshi Nomura, vice-president of JFE Steel and director of JFE Steel’s West Japan Works, attended a press meeting in the works on October 12 and gave an outlook the works’ crude steel output would total approximately 20 million tonnes through fiscal 2010 ending in March 2011. The production was previously estimated to exceed 20 million tonnes as of August. However, the demand currently seems to decline slightly due to low construction and civil engineering market in Japan and closing of Japanese government’s bounty system for eco-car.
As to the works’ no.3 blast furnace in suspension, Mr. Nomura said the furnace’s capacity expansion will complete in May 2011 as scheduled and the operation can restart at the same time if the current output level continues. West Japan Works’ crude steel output increased by 1.7 million tonnes to 10.07 million tonnes in the first half of fiscal 2010 from the corresponding period of fiscal 2009. The export ratio was around 50%, mainly for South Korea, China and Southeast Asia. Mr. Nomura said the works’ operation ratio is about 85% against the capacity and blast furnaces’ operation ratio is 2.2 of capacity. He expressed the works’ crude steel output in the second half year is expected to maintain the level as high as in the first 6 months. Mr. Nomura said it is important to develop high value products and reduce productive costs in order to survive severe price competition in East Asia while the works also tries to maintain stable quality and delivery services. West Japan Works plans to employee about 280 people newly in fiscal 2011 while the new employees totaled about 180 in fiscal 2010.Japan Steel Scrap Composite Prices (Sangyo Press)
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