Japan’s second largest steel producer, JFE Steel, has reported a significant increase in its non-consolidated crude steel production and steel sales figures in Q2CY’21 (Apr-Jun’21), SteelMint learned from the company’s results released today, 12 Aug’21.
Crude steel output up 30% y-o-y
The company churned out 6.25 million tonnes (mn t) of crude steel (standalone) in Q2, 30.4% higher y-o-y compared to 4.79 mn t in Q2CY’20. On a quarterly basis, the output saw a marginal decline of 1.1% against 6.32 mn t in Q1CY’21. The rise in production was mainly attributed to increasing steel demand in Japan with easing of the Covid-19 impact.
The company’s consolidated crude steel output stood at 6.59 mn t in Q2CY’21, up 29.4% y-o-y. In comparison with Q1CY’21, the output remained largely stable.
Steel sales
The company’s standalone steel sales volumes rose by 14.6% y-o-y to 5.26 mn t in Q2CY’21 as against 4.59 mn t in the corresponding period last year (CPLY). On a q-o-q basis, the sales volumes fell by 8% as against 5.72 mn t in Q1CY’21. Firm steel demand resulted in higher sales. Exports share accounted for 43.2% of the total sales.
Recent developments
Recently, JFE Steel commenced operations at two upstream facilities in West Japan Works in Jun’21. The company commissioned a continuous casting machine No.7 of 2 mn t/year capacity in Kurashiki. This will allow casting of cross-sectional slabs which will be combined with a plate mill to produce large-sized steel plates. The company also started a coke oven battery No.3 in Fukuyama works, having a production capacity of approximately 360,000 t/year.
Japan’s steel market overview
Steel demand in Japan is currently strong with recovery in steel consumption in various sectors. Demand, going forward, is expected to continue to recover, mainly in the manufacturing industry. Ordinary steel orders in May’21 showed an upward trend, increasing by 35.5% y-o-y.
Domestic automobile production is currently decreased due to semiconductor shortage. Although production is expected to recover post the summer season, there are risks of prolonged impacts from a shortage of semi-conductor and automobile components which should be carefully monitored, the company said in its quarterly report.
It may be noted that last week, Nippon Steel Corporation, the largest steelmaker in Japan, had reported standalone crude steel production at 18.36 mn t in H1CY’21 while net steel shipments stood at 16.77 mn t in the same period. The company eyes a V-shaped recovery in its operational performance due to drastic cost reduction in the previous year.
Forecast
JFE Steel expects standalone crude steel production to reach 6.7 mn t in the quarter ending 31 Sept’21. The company has kept its annual production target unchanged at 26.5 mn t for the fiscal year ending on 31 Mar’22.
Leave a Reply