Japan Raw Steel Output Increases by 52.7% in First Half of 2010

Japanese 5 integrated steel makers increased raw steel output by 52.7% to 42.67 million tonnes in January-June from the same period of 2009. The steel makers increased the output due to the recovery in the overseas steel market and Japanese manufacturing industries. Nippon Steel’s output showed 66.8% year-on-year increase while the production increased by 55.6% for Kobe Steel and by 45.6% for JFE Steel.

The 5 integrated steels’ raw steel output increased by 33.8% to 7.212 million tonnes in June from a year earlier, which represented 3.6% decline from May. The daily output was 240,400 tonnes, which remained roughly flat from 241,300 tonnes in May.

The 5 makers’ pig iron output increased by 41.5% to 40.82 million tonnes in January-June from the same period of 2009. The output increased by 35.3% to 6.9 million tonnes in June from a year earlier, which represented 3.8% month-to-month decrease. The daily output of 230,000 tonnes was in line with May level.

The raw steel output decreased by only 3% in January-June 2010 compared with the same period of 2008 when every maker kept high level operation. However, the steel makers in China reduce the output when the price declines. The Japanese steel makers would reduce the output due to the demand slowdown in China.