JFE Steel Restarts Shaft Furnace to Raise Crude Steel Output in Oct.

JFE Steel restarts shaft furnace operation in Keihin area of East Japan iron works in October. The firm currently operates 7 blast furnaces with suspension of 2 blast furnaces. The firm’s steel shipment is increasing mainly for export and, then, decides to increase steel output by restarting a shaft furnace to produce pig iron using ferrous scrap.

JFE Steel reduced steel output largely due to world economy downturn since last autumn. The firm has suspended blast furnaces in Fukuyama area and Kurashiki area of West Japan iron works. Now steel demand is recovering for export and domestic automobile industry. Japanese crude steel output is expected to increase by 20% to 23 million tonnes for July-September from April-June, according to Ministry of Economy, Trade and Industry.

The firm will increase crude steel output by 27% to about 6.5 million tonnes for July-September from April-June. Hot metal supply may shorten if the firm keeps suspension of 2 blast furnaces for October-December.

A shaft furnace melts ferrous scrap and produces pig iron. The firm introduced the furnace to reduce CO2 emission in Keihin area of East Japan iron works last year. The furnace’s production capacity is 500,000 tonnes per year, the largest in Japan. The firm started the operation in August 2008 while suspended in last autumn.

Ferrous scrap supply would become tighter by restarting the furnace. Ferrous scrap market price might surge in response to supply tightness.