The largest Japanese steelmaker Nippon Steel has stated that in the fiscal year 2011-2012 (ending on March 31, 2012) it expects its crude steel output will total 30.03-30.13 million mt, down seven percent year on year.
Japanese steel mills have reduced production in the current fiscal year amid the impact of factors such as the floods in Thailand, the uncertain international economic situation and the slowness of the reconstruction process after the earthquake which hit Japan in March 2011. Nevertheless, steel inventory in Japan remains at a high level. Affected by the appreciation of the Japanese yen, Japan's steel export revenues have also declined.
Meanwhile, JFE Steel, the second largest Japanese steelmaker, expects its crude steel output in the fiscal year 2011-2012 will amount to 27 million mt, down six percent year on year.