The largest Japanese steel producer Nippon Steel Corporation will restart steel production at one of its factories at Kimitsu Works in January, the company’s spokesmen told SteelOrbis. One basic oxygen furnace (BOF) out of two at Kimitsu Works was stopped in early September due to a typhoon.
The monthly production of the stopped factory is 150,000 mt of mostly construction steel and wire rod used in automotive production. As a result, the loss in steel production will be about 600,000 mt, SteelOrbis has learned. The other factory at Kimitsu Works is in operation.
Nippon Steel Corporation has asked other steel producers to fill the gap of feedstock supply for domestic automakers and other customers. The major effect from the stoppage will be seen in the local Japanese market, but some gradual reduction in sales to the international market is also possible. “We are supplying steel to both local and export markets [from Kimitsu]. The export share is 30-40 percent,” the company’s representative said.
The export sales of flat steel, such as hot rolled coils, which is the main export item for the company, will be not affected by the plant stoppage. Some reduction is possible only in case of continued weak international market fundamentals in the October-December period, sources said.