TEX reported that when the production activities of stainless steel at seven major stainless steel companies in Japan for August of 2009 are traced, reflecting the active exports of stainless steel products from Japan, the output in August was maintained on a similar scale to that in July, when the production recovered.
Seven major stainless steel companies in Japan produced 274,000 tonnes in total of crude stainless steel in July and the output of crude stainless steel by seven companies in August was kept on the level of 273,000 tonnes. When the quantities of stainless steel produced at major mills in August are compared with those in July, the Wakayama Works of Sumikin Iron and Steel produced 12,432 tonnes in August as decreased by 14% from that in July and also the Shunan Works of Nisshin Steel produced 50,126 tonnes in August, having decreased by 6% from that in July. On the other hand, the Chiba Works of JFE Steel produced 66,253 tonnes in August as increased by 3.5% from that in July and the Kinuura Works of Nippon Metal Industry produced 25,280 tonnes in August, which increased by 4.6% compared to that in July.
Because of the increased exports of stainless steel products for China, stainless steel companies in Japan have turned largely to expand their production of stainless steel from July 2009 and this level of the production was maintained in July to September quarter of 2009 at least. The output of crude stainless steel in Japan for July to September quarter was kept on a scale of 270,000 tonnes per month, having increased by more than two times compared with those of 110,000 to 120,000 tonnes per month produced in January to February of 2009.
Also, in comparison with the averaged quantity of 322,000 tonnes per month produced in July to September quarter of 2008, the output of crude stainless steel in July to August of 2009 had recovered to the level of 85% from that in 2008.
In view of the facts that the outstanding contracts to export stainless steel products from Japan have been still left and the demand for stainless steel products from domestic market of Japan is recovering even on a slow pace, the production activities of stainless steel in Japan for October to December quarter of 2009 are anticipated to be able to maintain on a similar scale to that at present.
(Sourced from TEX Report Limited)
