Japan Raw Steel Output Hits 40-Year Low in 1H F2009

Japanese raw steel output decreased by 29.6% to 43.33 million tonnes in first half of fiscal 2009 or April-September from same period of fiscal 2008, announced by Japan Iron and Steel Federation on Monday. The half year production was 1.5% lower than second half of fiscal 2008 hitting the lowest level as half year after 40.97 million tonnes in first half of fiscal 1969. The half year production hit historical low while the monthly production year to year decrease narrowed to less than 20% in August and September from more than 40% in earlier the year.

The raw steel production decreased by 18.0% to 8.27 million tonnes in September from a year earlier, which decreased for 12 months in a row. The production was 0.5% lower than August, which was the first drop in 5 months. The output in July-September decreased by 20.4% to 24.24 million tonnes from same period of 2008 while the production was 26.9% higher than April-June.

The converter steel output decreased by 2.5% to 6.44 million tonnes in September from August, which was the first drop in 5 months. The electric furnace steel output increased by 7.4% to 1.83 million tonnes from August, which increased for 2 months in a row. The production decreased by 15.0% for converter steel and by 27.0% for electric furnace steel from a year earlier, which decreased for 12 months and 13 months in a row respectively.

The carbon steel output decreased by 0.9% to 6.76 million tonnes in September from August, which was the first drop in 5 months. The special steel output increased by 1.6% to 1.51 million tonnes, which increased for 7 months in a row. The production decreased by 14.3% for carbon steel and by 31.2% for special steel from a year earlier, which decreased by 12 months and 11 months in a row respectively.

The output of hot rolled products increased by 0.5% to 7.33 million tonnes in September from August, which increased for 5 months in a row, while the production decreased by 20.5% from a year earlier, which decreased for 12 months in a row. The output decreased by 0.8% to 6.01 million tonnes for carbon steel products from August, which was the first drop in 5 months, while the special steel products output increased by 6.7% to 1.31 million tonnes, which increased for 7 months in a row.

The long products output decreased by 0.3% to 1.53 million tonnes in September from August. The flat products output decreased by 1.0% to 4.45 million tonnes. The output decreased by 20.0% for long products and by 16.8% for flat products, which decreased by 15 months and 12 months in a row respectively.