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| Production Activities Of Stainless Steel At S/S Companies / Japan In CY 2007 |
| = JFE Steel Specialized To Produce Cr Based Stainless, Sharing 95%, NSSC Also Produced More Cr Based Stainless |
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When the production activities of stainless steel at stainless steel companies of Japan in the calendar year (January - December) of 2007 have been traced, it is known that JFE Steel has specialized to produce chrome-based stainless steel products and, consequently, a ratio of Cr-based stainless steel products at JFE Steel shared 94.5% of their whole production of stainless steel in 2007. The quantities of stainless steel products produced at each of stainless steel companies of Japan in the calendar year of 2007 were as per the table attached hereto. In the same case as that of JFE Steel, the Nippon Steel Group, including Nippon Steel & Sumikin Stainless Steel (NSSC), has been developing the plan to increase the output of Cr-based stainless steel products and, as a matter of fact, has raised a ratio of Cr-based stainless steel products to 52.8% of their whole production of stainless steel in 2007. For a reference, a ratio of Cr-based stainless steel products produced by the Nippon Steel Group in the preceding year of 2006 was 39.7%. The apparent quantity of stainless steel products (hot-rolled products) produced in Japan for 2007 came to 3.494 million tons, having increased by 4.1% compared with that (3.354 million tons) in the preceding year of 2006. However, since the classification of steel statistics in Japan has changed from January of 2007, Cr-Mo based stainless steel products, which were classified to the category of heat-resisting steel, have changed to classify to the category of stainless steel from 2007, which is the same classification as that in Europe and the USA. Accordingly, it has become difficult to compare exactly the quantities of stainless steel products produced in Japan for 2007 with those for 2006. At the same time, in view of the fact that the quantities of Cr-Mo based stainless steel products produced in Japan for 2006 were classified to the category of heat-resisting steel, the ratios of Cr-based stainless steel products produced by the two companies as mentioned above in 2007 are unable to have accurate comparisons with those produced and classified in 2006. However, as a reaction to the soared nickel price in 2007 (risen to US$54,000 per ton in May), stainless steel mills of Japan inclined to produce more Cr-based stainless steel products in 2007. Therefore, a ratio of Cr-based stainless steel products produced in Japan for 2007 had raised as a whole of Japan. The 3.494 million tons of stainless steel products produced in Japan for 2007 had included 1.549 million tons of Cr-based stainless steel products, having shared 44.3% of the whole production of stainless steel products in 2007, and a balance of 55.7% came to Ni-based stainless steel products. For a reference, the ratios of stainless steel products classified on the output in the preceding year of 2006 were 36.6% of Cr-based products and 63.4% of Ni-based products respectively. Following the quantities of Cr-based stainless steel products produced by JFE Steel and the Nippon Steel Group in 2007, the Wakayama Works of Sumitomo Iron & Steel was the third largest producer of Cr-based stainless steel products in 2007, having shared 52.6% of their whole production of stainless steel, and Nisshin Steel was the fourth largest producer of Cr-based products in 2007, having shared 36.1% of their whole production of stainless steel. In consequence of these figures, the total quantity of Cr-based stainless steel products produced by all of blast furnace mills of Japan in 2007 had shared 65.2% of the whole output of stainless steel products in the year. Also, a ratio of Cr-based stainless steel products produced by specialized stainless steel companies and special steel companies in Japan for 2007 had shared 44.4% of the whole production of stainless steel. The ratio of Cr-based stainless steel products produced by blast furnace mills of Japan in 2007 was overwhelmingly higher that at electric furnace mills. As the countermeasure for a steep rise of nickel price, the stainless steel industry of Japan adopted until 2007 the policy to increase production of Cr-based stainless steel products with aims to reduce costs for production of stainless steel and to expand market for stainless steel products. However, since prices of ferro-chrome have risen to an extraordinary extent from the beginning of 2008, the circumstances are going to change. The benchmark price of charge chrome (high carbon ferro-chrome) for shipments in April - June quarter of 2008 has risen to US$1.98 per lb. of Cr, having had a considerable rise of 53% compared with that in the preceding quarter of January - March. The comparatively lowered prices of Cr-based stainless steel products were a conclusive factor to develop the market but the sudden and sharp increase of costs for production of Cr-based stainless steel has come up to the surface. In view of supply and demand of ferro-chrome in the international market, the short supplies of ferro-chrome are anticipated to continue until 2012 and, therefore, prices of ferro-chrome are still in the direction to rise further. Cr-based stainless steel products are mainly used to manufacture parts of automobile and, accordingly, the consumption of Cr-based stainless steel products has been increasing. In view of this aspect, there is an opinion in the market that, in order to continue a smooth rise of prices for CR-based stainless steel products, it will be inevitable to face a wall for costs in production of Cr-based stainless steel. Even in the steel industry of Japan, a competition of prices between plated steel sheets and Cr-based stainless steel products is thought to arise. The production of Cr-based stainless steel products has suddenly increased to a substantial extent in Japan and South Korea but, on the occasion of a short supply of ferro-chrome, it is questioned whether the production of stainless steel in Japan is shifted again to produce more Ni-based stainless steel products or not. By taking into consideration of nickel situation which is certainly supposed to come to an oversupply but its price is still on a high level, the matter to think about an importance of Cr-based stainless steel products is coming up. |
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| last modified : Fri 30 May, 2008 [10:42] |
