Nippon Steel Announces Further Production Halts

SEATTLE (Scrap Monster):  Japanese steelmaker Nippon Steel announced closure of two more blast furnaces, which is expected to reduce the company’s operating capacity by 4 million tonnes per year. Originally, the company had planned the closure of the above blast furnaces towards end-2020. However, the weak demand situation has forced it to advance the shut down.

The company declared that the blast furnace No.2 at the Muroran works will be closed in the first half of July this year. It blamed slowdown in demand for the closure. Originally, Nippon Steel had planned the plant refurbishment works in the latter half of H2 this year. Also, furnace No.2 at the Yawata works will be taken out of blast in early July. It had previously planned closure of the furnace in September.

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The Covid-19 outbreak has impacted domestic demand for steel products in the country. The planned additional output cuts by domestic car manufacturers are likely to keep the demand muted in the near-term. Incidentally, the Japanese crude steel output had recorded a year-on-year decline of 13% in March this year.

Earlier, Nippon Steel had closed the Kure No. 2 and Kashima No. 1 blast furnaces and the No. 1 blast furnace at the Wakayama works. Additionally, it had announced lowering of output at No. 2 blast furnace at the Kimitsu works.