According to a major trading company's survey, Japan's 18 electric steelmakers operating in the Kanto area are expected to produce a total of 414,000 tonnes of crude steel in January 2012, down by 25,000 tonnes or 5.6% from their actual production in December 2011 that is put at 439,000 tonnes. The expected production level indicates an increase of 44,000 tonnes or 11.8% on the definite production volume in January 2011.

Among the 18 electric steelmakers, 13 companies plan to reduce their crude steel production in January 2012 as compared with their production in December 2011. The 13 companies include Jonan Steel Corp with the Kawaguchi works, Chiyoda Steel Co with the Ayase works, Daiwa Steel Corporation with the Misato works and Tokyo Kohtetsu Co with the Oyama works. In contrast, three other companies expect to produce more crude steel each in January 2012 than in December 2011. The remaining two companies plan to execute a flat level of crude steel production each in January 2012.

Under the existing circumstances, the 18 electric steelmakers' purchases of locally available ferrous scrap are estimated to total around 431,000 tonnes in January 2012, down by 28,000 tonnes or 6.0% from their actual purchases in December 2011. Ferrous scrap stocks at their works are estimated to total 142,000 tonnes in the final week of December 2011, down by 8,000 tonnes or 5.5% from the end of November 2011.

(Sourced from TEX Report Limited)