According to media reports, Japan-based Nippon Steel, one of the leading global steelmakers, is considering halting one of its two blast furnaces located in Wakayama, due to increasing competition and worsening market conditions.
As SteelOrbis previously reported, the steelmaker has decided to halt its two blast furnaces at its Kure Works, cutting its domestic steel production capacity by 10 percent, and may even consider shutting down the entire plant, along with its plate production lines due to increasing output in China.
Shrinking domestic demand and global steel prices which are under pressure due to oversupply are among the key reasons for Nippon Steel’s decision to reduce production capacity.