MetalBiz reported that Nippon Steel is expected to improve third quarter' crude steel production by 38.6% QoQ to 6.68 million tonnes before mergers, and the total production after mergers will increase by 36% QoQ to 7.32 million tonnes.

A Nippon Steel spokesman said that the production growth in July to September 2009 quarter lies in the completed inventory adjustment and they are intended to increase third quarter's capacity utilization rate from 60% in Q2 to 80%. He added that the rising extent is slight, resulted from much too low output in April to June 2009 quarter.

Mr Shinichi Taniguchi VP of Nippon Steel said that now it is difficult to predict the output from October this year to March 2010 due to the uncertain tendency of steel demand and expected that Asian steel production capacity will improve in January to March 2010.

Previously Nippon Steel decided to restart its number 1 blast furnace of Oita plant from August 2nd 2009, but it is undetermined when to restart number 2 blast furnace of Kimitsu plant which stopped production in the beginning of March.

(Sourced from MetalBiz)