Japanese steel companies to recover first

Japan NSSC three major steel companies 2013 annual crude steel production is expected to hit its highest level in nearly three years. Thanks to Japan's domestic construction demand. Although production capacity of enterprises still room for improvement, but if it will affect the further yield gains, so now just to achieve "optimal level."

As the need to invest large equipment steel industry, its revenue largely affected by the operating rate. However, the operating rate exceeds a certain level, because of the need buy scrap iron and other costs but will also increase. JFE Steel expects fiscal 2013 (April 2013 - March 2014) crude steel production of 29 million tons, an increase of 3.7% over the previous year. The company's vice president Shinichi Okada said that although the production capacity of 33 million tons per year, but remained at 29 million tons and 3,100 million tonnes will be the most efficient. JFE Steel production is expected to be slightly lower than the first half of this level, but the second half will be on the right track.

NSSC's annual forecast has not been announced, but estimates range from 45 million to 4600 million tons. The company's first half forecast (23.1 million tons) has been in an economic and efficient level. In the second half, equipment modification will become the main reason for cuts, but if the market then take a good, intermediate materials can be purchased from the outside in order to maintain production. In addition, Kobe Steel also plans to produce 7.6 million tons this year crude steel, an increase of 8.4% over the previous year. Capacity utilization increased from 85% to 90%.

Three enterprises in the year 2012 a total of approximately 78.53 million tons of crude steel production. Expects this year's production will increase by about 5% to about 82 million tons, is expected to exceed production was 81.77 million tons in 2010. However, NSSC too Tian Keyan vice president, said China's steel overcapacity problem no signs of easing, if the overseas market to pick up slightly, then China's major enterprises will increase, resulting in market conditions deteriorate again.

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