Japan’s February crude steel output was also down 5.9% on month, but the country’s daily steel production averaged 261,000 tonnes during last month, up 5.2% on month, according to a JISF official.
Among the total, blast furnace (BF) mills produced 5.35 million tonnes, down 3.5% on year and 8.2% lower on month, and the balance by electric-arc-furnace (EAF) mills was up 1.2% on year and 1.1% higher on month.
Last month, Japan’s carbon steel production accounted for 5.67 million tonnes, down 1.5% on year and 3.9% lower on month, and that of special steel at 1.63 million tonnes, down 4.9% on year and a larger 12.4% on month, the JISF data showed.
“The steeper decline in special steel output was partially due to the slower steel consumption by Japan’s auto sector, but the drop would be just temporary,” a Tokyo-based steel trader commented.
Over January-February, Japan’s crude steel output totaled 15.06 million tonnes, down 2.2% on year, according to JISF data.
By product, Japan’s plates output in February increased 19.1% on year in response to the improving steel consumption by domestic shipbuilders and firm demand from other sectors such as machinery manufacturing.
“Japan’s plates output will stay at a high level for some time. And when the country’s auto sector resumes planned higher production, hot metal supply will tighten and plates output may be adjusted lower,” a second trader in Tokyo predicted. He added that Japan’s overall hot metal output will remain tight for months with a major BF under relining.
Nippon Steel, Japan’s largest integrated mill, has started relining a BF with 4,300 cu m inner volume at Nagoya works in central Japan since the end of January and plans to restart it in June, as reported.
Written by Yoko Manabe, yoko.manabe@mysteel.com
This article has been published under an exchange agreement between MySteel Global and SteelMint.
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