Japan Raw Steel Output Hits 40 Year Low in 2009

Japanese raw steel output decreased by 26.3% or 31.2 million tonnes to 87.53 million tonnes in 2009 from 2008, which decreased for 2 years in a row, hit less than 90 million tonnes for the first time since 1971 and hit the lowest level since 1969, announced by Japan Iron and Steel Federation on Wednesday. The decrease was the widest under worldwide sharp demand drop topping 10.5% drop in 1998.

The converter steel output decreased by 23.4% to 68.34 million tonnes in 2009 from 2008 and the electric furnace steel output decreased by 34.9% to 19.2 million tonnes. The integrated steel makers increased the output with higher demand for export and domestic automobile industry while the electric furnace carbon steel makers experienced very slow domestic building demand. The electric furnace weight decreased by 2.9 percentage points to 21.9%.

The carbon steel output decreased by 22.9% to 71.41 million tonnes in 2009 from 2008 and the special steel output decreased by 38.4% to 16.12 million tonnes. The special steel output renewed the record for 7 years in a row though 2008 but the output decreased sharply under major production cut by automakers in the first half and production cut by construction and industrial machinery though the year.

The production of hot rolled steel products decreased by 27.7% to 76.74 million tonnes in 2009 from 2008. The carbon steel products’ output decreased by 24.7% to 63.49 million tonnes and the special steel products’ output decreased by 39.2% to 13.25 million tonnes.

Japanese raw steel output decreased by 19.6% to 8.95 million tonnes in December from a year earlier, which decreased for 2 months in a row. The output kept more than 8 million tonnes for 5 months in a row and hit near 9 million tonnes. The output increased by 0.8% to 26.61 million tonnes in October-December from same period of 2008.

The output increased by 22.9% to 7.26 million tonnes for converter steel and by 7.3% to 1.69 million tonnes for electric furnace steel in December from a year earlier. The converter steel output increased for 2 months in a row while the electric furnace steel output hit increase for the first time in 16 months.

The carbon steel output increased by 18.5 %to 7.04 million tonnes in December from a year earlier. The special steel output increased by 24.0% to 1.91 million tonnes. The output increased for 2 months in row for carbon steel and for the first time in 14 months for special steel. The output of hot rolled steel products increased by 24.5% to 7.82 million tonnes, which hit first increase in 15 months.

Japanese raw steel output kept more than 10 million tonnes for 8 months in a row through October 2008. But the output started to decrease in November 2008 and hit less than 6 million tonnes in February-April in 2008.