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Nippon Steel predicts higher January-March steel output

• Friday, February 5, 2021
• Source:ferro-alloys.com

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[Ferro-Alloys.com] 

Japanese steel mill Nippon Steel expects its crude steel output in this year's January-March quarter to recover above 10mn t for the first time since January-March 2020, supported by a stronger than expected recovery in manufacturing demand for steel products from Covid-19 lows.

 

Nippon Steel today revised up its projected crude steel output to 33.2mn t for the April 2020-March 2021 fiscal year from an earlier forecast 32.7mn t. The planned 2020-21 crude steel output is down by 16pc from the firm's 2019-20 output of 39.5mn t.

 

A strong recovery in steel demand has prompted Nippon Steel to resume three blast furnaces(BFs) since November last year. The company is still keeping two BFs at its Wakayama and Kure steel works shut ahead of their planned closure later this year and in 2022.

 

A global economic slowdown and the subsequent Covid-19 slump in manufacturing forced the company to bank, or take out of blast, six BFs after February last year, including one that was later closed permanently.

 

The company's quarterly steel output recovered to 8.5mn t during October-December last year after falling below the January-March 2009 low of 7.7mn t during the global financial crisis for two straight quarters because of the impact of Covid-19.

 

Steel demand from the manufacturing sector is recovering, led by strong demand from car manufacturers, while demand from the shipbuilding industry remains depressed, Nippon Steel said. The company also expects steel demand to increase for public works but weaken for the housing sector.

 

Source: Argusmedia

 

 

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