Japanese steel production fell to 10-year low in January

Japan's crude steel production declined 9.8% year-on-year to a 10-year low of 8.14 million tonnes in January 2019, reflecting a 3.8% drop from December 2018, according to the latest data released Federation of Metallurgy of Japan.

Steel production in Japan last fell to this level in July 2009 to 7.66 million tonnes.

A JISF spokesman said Monday that the decline in output was not due to a slowdown in demand, but to supply-side problems such as production capacity.

JFE Steel, Japan's second largest mill, is expected to lose a total of 1.4 million tonnes of steel production in October-February due to problems with three blast furnaces at the Kurashiki and Fukuyama sites at the West Japan Iron and Steel Works. S&P Global Platts previously reported, as well as the Chiba section at the East Japan Iron and Steel Works.

In January, total converter output was 6.13 million tonnes, up 11.6% on December and 2.5% on December, while electric furnace output was 2.01 million. tons, down 3.9% compared to the same period last year, and 8.5% compared to the previous month. ,

A JISF spokesman said the drop in production from converters largely reflects problems with JFE's production, but there is no clear reason for the decline in steel production from electric furnaces. The decline was caused by fewer working days in January 2019 compared to January 2018, the official said.

By product, hot rolled coil output in January fell 12.1% year-on-year and 0.6% year-on-year to 3.33 million tonnes, while H-beam production fell 321,900 tonnes, which down 5% from the same period last year, but up 0.1% from the previous month.