According to a January 30th 2009 announcement by Ministry of Economy, Trade & Industry, Japan's steel companies plan to produce a total of 19,262,000 tonnes of crude steel in January to March 2009 quarter, down by 7,132,000 tonnes or by 27% YoY, indicating their quarterly crude steel production of less than 20 million tonnes for the first time in 38 years since fiscal 1970.

The announcement is based on METI's hearings from the nation's various steel companies.

The planned production volume of crude steel is lower by 1,838,000 tonnes or 8.7% than METI's demand estimate of 21,100,000 tonnes for January to March 2009 quarter. Also, the planned production volume indicates a decrease of 11,573,000 tonnes or 37.5% from the definite production volume of 30,835,000 tonnes in January to March 2008 quarter. The following are the steel companies' production plans for the fourth quarter of fiscal 2008

Ordinary steel products
Total production is projected at 13,339,000 tonnes, down by 4,469,000 tonnes or 25.1% QoQ from actual production a quarter ago. Of the projected total, the first 9,878,000 tonnes of products are intended for domestic shipments, down by 3,619,000 tonnes or 26.8% from a quarter ago and the remaining 3,461,000 tonnes for export sales, down by 1,141,000 tonnes or 24.8%.

H beams, small bars
Total production is projected at 610,000 tonnes for H beams, down by 293,000 tonnes or 32.4% QoQ from actual production a quarter ago. Total production is projected at 1,834,000 tonnes for small bars, down by 299,000 tonnes or 14% QoQ from actual production a quarter ago.

Specialty steel products
Total production is projected at 3,220,000 tonnes, down by 1,733,000 tonnes or by 35% QoQ from actual production a quarter ago. Of the projected total, the first 2,145,000 tonnes of products are intended for domestic shipments, down 1,449,000 tonnes or 40.3% from a quarter ago, and the remaining 1,075,000 tonnes for export sales, down by 285,000 tonnes or 20.9%.

Meanwhile, METI describes the compiled results from its hearings this time as provisional data. For the main reason, METI expects the Japanese steel companies to continue reviews of their production plans in the light of the world's deteriorating economic conditions.

(Sourced from TEX Report Ltd)