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| Tendency To Produce More Cr-Based Stainless Steel In Japan Came To Standstill In Q1 / 09 |
| = Ratio To Produce Cr-Based Stainless Steel At Blast Furnace Mills Fell To Lower Level Than 60% |
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Blast furnace mills in Japan have deepened the tendency to increase their production of chrome-based stainless steel (hot-rolled products) but, owing to a considerable reduction in production of stainless steel implemented by these mills in the first quarter (January - March) of 2009, the ratio of chrome-based stainless steel products produced by seven blast furnace mills (including three companies of the Sumitomo Group) had fallen to 58.5%, having broken the level of 60%. Also, the ratio of chrome-based stainless steel products produced by specialized stainless steel companies (including special steel companies) in the first quarter of 2009 had come down to 37.0%, having fallen in the same case as that of blast furnace mills. This reduction in production of stainless steel was influenced by the substantial decreases in manufacturing of automobile and its related parts, and the reality, which a 41% of the demand for stainless steel products has relayed on that from automobile industry, has come up to the surface. For a reference, the ratios to reply on automobile industry are 56% for chrome-based stainless steel products and 18% for nickel-based stainless steel products. The quantities of stainless steel products produced in Japan for January - March quarter of 2009 were <> chrome-based stainless steel products : 137,963 tons, <> nickel-based stainless steel products : 234,760 tons and <> total : 372,723 tons. In comparison with the quantities of stainless steel products produced in Japan for the same quarter of 2008, which were <> chrome-based products : 374,276 tons, <> nickel-based products : 482,824 tons and <> total : 857,100 tons, those produced for January - March quarter of 2009 had a considerable decrease of 56.5% on the average and, particularly, the output of chrome-based stainless steel products in this quarter had a decline of 63.1%. Out of the total output in the first quarter of 2009, blast furnace mills produced 211,000 tons of stainless steel products as decreased by 58.8% from that in the same quarter of 2008 and specialized stainless steel mills produced 158,00 tons of stainless steel products as decreased by 52.4% from that in the first quarter of 2008. According to the statistical classification of stainless steel products so far applied in Japan, chrome-based stainless steel products had been put in the category of heat-resisting steel products but, since the Ministry of Economy, Trade and Industry has revised this classification, certain grades of chrome-based stainless steel products (products contained such rare metals as chrome + molybdenum, niobium, and so on) have been included in chrome-based stainless steel products and, consequently, the portion of chrome-based stainless steel products has expanded from 2007. Namely, the ratios of stainless steel products in Japan for 2007 had changed largely to 44.3% for chrome-based products and 55.7% for nickel-based products (compared with 36.9% for chrome-based products and 63.1% for nickel-based products in 2006). Also, the ratios in 2008 had changed considerably to 45.7% for chrome-based stainless steel products and 54.3% for nickel-based stainless steel products respectively. However, this basic tone was unable to maintain in the course of January - March quarter of 2009 as mentioned above and the tendency to produce more chrome-based stainless steel products in Japan has come temporarily to a standstill. In consequence of this aspect, the ratio of chrome-based stainless steel products produced by blast furnace mills in January - March quarter of 2009 was 58.5%, having broken the level of 60%. The ratios of chrome-based stainless steel products produced by blast furnace mills in the last two calendar years of 2008 and 2007 had raised to 68.7% in 2008 and 65.2% in 2007 respectively but, because of a substantial reduction in automobile manufacturing as the main sector to require chrome-based stainless steel products, the position of chrome-based stainless steel products in January - March quarter of 2009 had been driven to change. The ratios as of 2008, which major steel mills in Japan produced chrome-based stainless steel products, had raised to 95% at JFE Steel, 73% at Nippon Steel and 43% at Nisshin Steel. When a reduction in automobile manufacturing is loosened and production activity of stainless steel is normalized, a ratio to produce chrome-based stainless steel products in Japan is anticipated to recover. |
| last modified : Thu 20 Aug, 2009 [09:59] |
