Japan Raw Steel Output Represents First Y/Y Increase in 14 Months

Japanese raw steel output increased by 0.5% to 8.858 million tonnes in November from a year earlier, announced by Japan Iron & Steel Federation on Friday. The production represented the first year-to-year increase in 14 months. The averaged output per day increased to 295,300 tonnes in November from 283,900 tonnes in October, which equaled to the pace as much as 108 million tonnes per year. The output rebounded to 85% level compared with the recent peak in April-September 2008 thanks to the firm export of steel sheet and the demand recovery from automobiles. However, the annual output for CY2009 is estimated to hit below 90 million tonnes for the first timne since CY1971.

Converter steel production increased by 5.6% to 7.044 million tonnes in November from a year earlier, which represented the first year-to-year increase in 14 months. On the other hand, electric furnace steel output decreased by 15.4%, which represented year-to-year minus for 15 consecutive months.

Carbon steel production increased by 2.2% to 7.009 million tonnes in November from a year earlier, which showed the first year-to-year rebound after 14 months. Special steel output decreased by 5.5% to 1.849 million tonnes, which showed year-to-year minus for 13 straight months.

Hot rolled steel production decreased by 1.2% to 7.677 million tonnes, year-to-year minus for 14 straight months. Among hot rolled steels, carbon steel output kept flat at 6.149 million tonnes and special steel output decreased by 6% to 1.527 million tonnes.

Among hot rolled carbon steels, long products decreased by 7.6% to 1.439 million tonnes, year-to-year minus for 17 consecutive months. Flat products increased by 3.2% to 4.658 million tonnes, which represented the first year-to-year upturn in 14 months.