JFE to extend second-half production cutbacks

JFE to extend second-half production cutbacks

Japanese steelmaker JFE Steel announced plans to further reduce its production during the second half of the current fiscal year ending March 30, 2006. As previously reported by SteelOrbis, JFE said that it would reduce its output by 500'000 metric tons in the third quarter of this fiscal year in an effort to lower its rising inventory. Further cuts during the second half of the fiscal year would bring JFE's full year production cuts to 1.9 million metric tons, according to various sources. The production cutback will mostly cover hot rolled coils that are produced for export to South Korea, China and Southeast Asia. Likewise, another Japanese steelmaker, Nippon Steel, announced plans to slash its sheet output by 800'000 metric tons during the second half of the current fiscal year. Moreover, Sumitomo Metal Industries announced a production cutback of 100'000 metric tons for the current quarter.