Oita’s Trouble Reduces Nippon Steel’s Output by 500,000T in Mar-Apr

Nippon Steel expects the steel products output will decrease by around 500,000 tonnes in March and April when No.2 blast furnace at Oita works cannot resume normal operation. The firm tries to secure steel source by output increase at other works and by purchasing slab and pig iron from alliance partners including Sumitomo Metal Industries, Kobe Steel and Nisshin Steel. Nippon Steel adjusts some delivery for existing orders and will reduce new order receipt when the firm cannot see when no.2 blast furnace can resume normal production.

Nippon Steel replaced stave of No.2 blast furnace at Oita works and restarted the furnace on March 1. However, the operation of the furnace is unstable due to the damage in tuyere by the meltage drop. The daily output is still several thousand tonnes per day compared with normal 13,000 tonnes while the firm tries to improve the operation rate. The firm expects the furnace could reach normal operation rate in around one month.

Oita works manufactures hot rolled coil and plate steel. The output was about 900,000 tonnes in January. Nippon Steel estimates the output of steel products will decrease by 300,000 tonnes in March and by 200,000 tonnes in April compared with the production plan. The firm estimates delivery will delay for some existing orders with around 400,000 tonnes of volume.