Japan Major 5 Steels’ Raw Steel Output Drops by 23.1% in CY2009

Crude steel production by Japanese 5 integrated steel makers decreased by 23.1% to 68.11 million tonnes in 2009 from 2008. The annual output decreased for 2 consecutive years and represented below 70 million tonnes for the first time since 1999. In December, the output increased by 23% to 7.21 million tonnes from a year earlier. The production recovered in the second half of 2009 thanks to the demand upturn from automobiles and exports. However, the annual output shrank by more than 20% at each maker in 2009 compared with 2008 due to wide volume down in the first 6 months.

Annual crude steel output decreased by 24.7% to 24.78 million tonnes at Nippon Steel in 2009 from 2008, by 20.8% to 23.54 million tonnes at JFE Steel, by 22.2% to 10.81 million tonnes at Sumitomo Metal Industries, by 26.5% to 5.92 million tonnes at Kobe Steel and by 24% to 3.07 million tonnes at Nisshin Steel.

In December, crude steel production increased by 31% to 2.84 million tonnes at Nippon Steel from a year earlier. Nippon Steel’s Oita iron works increased the output by utilization of world biggest twin blast furnaces and Kimitsu iron works recovered from the equipment accident.

JFE Steel’s output increased by 26.4% to 2.32 million tonnes. Sumitomo Metals’ output increased by 7.5% to 1.13 million tonnes. Kobe Steel’s output increased by 18.8% to 610,000 tonnes and Nisshin Steel’s output increased by 6.4% to 320,000 tonnes.

The 5 makers have continued wide-range output reductions since November 2008. The 5 makers’ monthly crude steel production in December was lower by 7% than the peak in July 2008.

The 5 makers’ annual pig iron production decreased by 22.3% to 66.94 million tonnes in 2009 from 2008. The monthly output increased by 11.9% to 6.84 million tonnes in December from a year earlier.