Japan’s Oct steel output falls 5% on year to 8.56 mil mt

27-Nov-2018

Japan’s crude steel production fell 4.5% year on year to 8.56 million mt in October, but was up 1.6% from September, data released Wednesday by the Japan Iron & Steel Federation showed.

A JISF official Thursday attributed the year-on-year fall to the stoppage of a blast furnace in October and the continuing impact of natural disasters in Japan in September.

Japan’s second largest integrated mill, JFE Steel, temporarily banked its No 2 blast furnace in the Kurashiki section of its West Japan Works in October. The company plans to return to pre-banking levels by end December, but was reported earlier as saying it was expecting to lose 400,000 mt of crude steel output due to the stoppage.

The JISF official said overall steel demand in Japan had not fallen in October, but the impact of a severe typhoon and an earthquake in Japan in September had continued to be felt in the month. “But we believe those affected by disasters have mostly returned to normal production in November, and we expect output loss in September and October will be covered in November and December,” he added.

Production by converters comprised 6.31 million mt of the October total, down 5.8% on year and edging down 0.1% from September, and output from electric furnaces 2.25 million mt, down 0.9% on year but up 6.8% on month.

By product, output of hot rolled coil in October edged up 0.1% on year and rose 7.3% from September to 3.52 million mt and of H-beams fell 2.1% on year but rose 15% on month to 336,100 mt.

Source: S&P GLOBAL PLATTS