Nippon Steel, the world’s third-largest steel producer by volume, expects crude steel output to fall by over a fifth to around 36.3 million mt on a consolidated basis in the financial year ending March 31, 2021.
Nippon Steel said it expects group crude steel output of 8.7 million mt in July-September, up from 8.3 million mt in April-June, and forecast 19.3 million mt in the second half of the fiscal year.
Nippon Steel’s main Japanese company unit expects to produce about 31.8 million mt of crude steel on an unconsolidated basis over the fiscal year, down almost 20% from 39.54 million mt in the previous year.
"Demand has decreased rapidly due to COVID-19 impacts [though] it is expected to increase in H2 but still at a lower level compared to before pandemic," it said, adding that a second half recovery would be mainly supported by the manufacturing industry.
Nippon Steel projected unconsolidated crude steel output in the first half of its financial year (April-September 2020) at 14.90 million mt, and production in the second half of the financial year at 16.9 million mt.
Run rates are expected to average about 60%-70% in the first half and about 80% in the second half of the financial year.
Currently, six out of its 16 blast furnaces are out of production, accounting for about 32% of its overall production volume.
The company currently has a total crude steel production capacity of about 52 million mt/year.
For the three months ended June 30, the Nippon Steel unit’s crude steel production reached 7.2 million mt, down 30% year on year.
-- Clement Choo, Samuel Chin
Source : Steel Business Briefing
