JFE Steel, the world's third largest steelmaker, announced on December 25 that it has stepped up planned output cuts in the face of plummeting global demand for steel during the current period of economic downturn. In mid-January, the company will halt operation of a blast furnace in the western Japanese city of Kurashiki to carry out maintenance work. The company said it is cutting production by nearly 26 percent in the second half of this fiscal year.
Accordingly, JFE Steel plans to cut crude steel output by 4 million mt to 11.68 million mt in the six months to March 31. The fall is steeper than the production cut of 1.52 million mt announced in November.
The blast furnace to be shut down is the company's oldest and has been in operation for 18 years. JFE Steel is the first Japanese company to halt a blast furnace due to the current economic downturn.