Japan Electric Furnace Steel Output Hits 27-Year Low in F2008

Japanese electric furnace steel makers’ raw steel output decreased by 17% to 25.71 million tonnes in fiscal 2008 ended March 2009 from fiscal 2009, which hit less than 26 million tonnes for the first time since fiscal 1981. The production decreased by 35.9% to 10.06 million tonnes in the second half year from same period of fiscal 2007 while the output increased by 2.5% to 15.65 million tonnes in the first half. The output decreased by 49.4% to 3.88 million tonnes in January-March from same period of 2008. The production could decrease to less than 20 million tonnes in fiscal 2009, which is the first time since fiscal 1977.

The production of electric furnace carbon steel makers decreased by 15.2% to 19.05 million tonnes in fiscal 2008 from fiscal 2007, which decreased to less than 20 million tonnes for the first time since fiscal 1982. The output decreased by 32.6% to 7.64 million tonnes in the second half year from same period of fiscal 2007 while the output increased by 2.3% to 11.4 million tonnes in the first half. The production decreased by 43.1% to 3.13 million tonnes in January-March from same period of 2008.

The output of electric furnace special steel makers decreased by 21.6% to 6.66 million tonnes in fiscal 2008 from fiscal 2007, which was as low as 6.59 million tonnes in fiscal 1982. The output decreased by 44.6% to 2.42 million tonnes in the second half year from same period of fiscal 2007 while the output increased by 2.9% to 4.24 million tonnes in the first half. The output decreased by 65.4% to 750,000 tonnes in January-March from same period of 2008.

The electric furnace steel makers’ production could decrease more in fiscal 2009 when they operate at less than 50% of the capacity. An official of maker said the company cannot see how much years it takes to recover the demand to normal level.