Japan: Nippon Steel to reduce 30% carbon emissions by 2030, Q2 crude steel output dips

Nippon Steel plans to reduce carbon emissions by 30% to 70 million tonnes (mn t) per year by 2030 compared to 2013. The company is targeting zero carbon emissions by 2050.
Furthermore, the company’s medium-to-long term plans include shutdown of five blast furnaces to 10 by CY’25 compared to the 15 currently operational.

Nippon Steel has shut down four of its blast furnaces till now. The BF No.3 at Kashima works is slated to be shut down by the end of CY’24, the company informed in its quarterly report.

This will cut down the company’s crude steel capacity by 20% i.e. 10 mn t per year to 40 mn t/year by 2030. Cost reduction is also expected to come down to JPY150 bn/year ($131.7 mn).

Nippon Steel announced operational and financial results for the second quarter ending on Sept’21 and for the first half of the fiscal year 2021-2022 (Apr’21-Mar’22) on 2 Nov’21.

Q2 highlights

• Standalone crude steel output decreased marginally by 1.2% to 10.05 mn t in Q2.
• Consolidated crude steel output fell by 4.3% to 11.37 mn t in Q2.
• Non-consolidated pig iron production stood at 9.89 mn t, down 1.5% q-o-q in Q2
• Standalone steel shipments dropped by 1.19% q-o-q to 9.09 mn t in Q2.
• Steel exports ratio in Q2 increased to 45%.
• Seamless pipe shipments were stable at 0.16 mn t.

Consolidated financial results:

• Net profit stood at JPY 298.7 bn ($2.62 bn)
• EBITDA stood at JPY 639.2 bn ($5.61 bn)
• EBITDA/t stood at JPY 27.5 bn ($241.45 mn)

  AM/NS India development plans
  AM/NS India, a joint venture between ArcelorMittal and Nippon Steel, has plans to expand steelmaking capacity to 14 mn t per year from 7 mn t at present at Hazira works. Along with this, feasibility study for setting up of another greenfield integrated steel plant in eastern India is going on to firmly capture the growing steel demand in India.

  Nippon Steel informed that in Sept’21, its India-based subsidiary started operations at the second pellet plant in Paradeep. In the same month, the company also commenced operations at Sagasahi mine.

  Nippon Steel cuts FY’21-22 target
  The Japanese steelmaker has slightly cut down its target of crude steel production and steel shipments for Apr’21-Mar’22 fiscal.

  • Standalone crude steel production target decreased to 39.70 mn t from the earlier forecast of 40 mn t.

  • Non-consolidated steel shipments fell slightly to 36.2 mn t as against the earlier forecast of 36.20 mn t.