Japan 5 Major Steels to Increase Raw Steel Output in July-September

Japanese major 5 steel makers’ raw steel production increases by around 30% to around 18.3 million tonnes in unconsolidated basis in July-September from April-June. They improve the operation rate when the demand improves for domestic manufacturers and offshore market. Their production cut is around 40% compared with same period of 2008 while the reduction was around 40% in April-June.

Their production decreased by 38% to 14.11 million tonnes in April-June from same period of 2008. The production was around 40% lower than the peak in April-September 2008 level while the production increased from 13.65 million tonnes in January-March 2009.

Nippon Steel plans 6.7 million tonnes of raw steel production in July-September, which is 39% higher than April-June. JFE Steel plans to increase the output by 27% to 6.5 million tonnes. The production increases by 21% to 2.76 million tonnes for Sumitomo Metal Industries, by 26% to 1.58 million tonnes for Kobe Steel and by 20% to 770,000 tonnes for Nisshin Steel.

Japanese raw steel output will increase by 21% to 23.07 million tonnes in July-September from April-June, which reaches 20 million tonnes for the first time in 3 quarters, according to Ministry of Economy, Trade and Industry. Higher demand for automobile and appliances along with higher export lifts the production.