Japan Raw Steel Output Drops by 3.3% in February

Japanese raw steel output decreased by 3.3% to 8.435 million tonnes in February from January, which represents decreases for 2 months in a row, announced by Japan Iron and Steel Federation on Thursday. The daily production increased by 7.1%, which was the first increase in 3 months. The output decreased by 12.7% to 87.097 million tonnes in 11 months through February from same period of previous year. Under the output pace, the output in fiscal 2009 ending March 2010 is less than 100 million tonnes for the first time in 10 years and the lowest level since 1998.

The output increased by 54.0% in February from a year earlier, which was the widest increase after 58.3% increase in August 1950. The converter steel output decreased by 6.9% to 6.621 million tonnes in February from January, which decreased for 2 months in a row. The electric furnace steel output increased by 12.7% to 1.815 million tonnes, which was the first increase in 5 months. The daily output increased by 3.0% for converter steel and by 24.8% for electric furnace steel, both of which increased for the first time in 3 months.

The carbon steel output decreased by 4.9% to 6.602 million tonnes in February from January, which decreased for 2 months in a row. The special steel output increased by 3.1 to 1.834 million tonnes, which was the first increase in 2 months. The daily output increased by 5.2% for carbon steel, which was the first increase in 3 months, and by 14.1% for special steel, which was the first increase in 2 months.

The output of hot rolled steel products decreased by 2.2% to 7.684 million tonnes in February from January, which decreased for the first time in 3 months. The output decreased by 1.8% to 6.186 million tonnes for carbon steel, which was the first drop in 3 months, and by 3.9% to 1.498 million tonnes, which decreased for 2 months in a row.

With the pace in February, the output in fiscal 2009 reaches more than 96 million tonnes, which is less than 105.5 million tonnes in fiscal 2008 and decreases for 2 years in a row. The output decreases to less than 100 million tonnes for the first time since 98 million tonnes in fiscal 1999 and hits the lowest level after 90.8 million tonnes in fiscal 1998.