Nippon Steel Engineering Co that it would resume operations of its blast furnace at its Kimitsu Works in Chiba Prefecture, which have been suspended since February 2009.

The NSE decision came in light of the recent rebound in the demand for steel from carmakers and electrical appliance manufacturers and recovering exports to China and other Asian countries. Representing the key industry, the NSE's move indicates that production is being revived at domestic firms.

It may be noted that in February 2009, NSE suspended operations at two of its blast furnaces, one of the three at the Kimitsu Works, which is the firm's main steel plant, and one of the two at Oita Works in Oita. Operations resumed at the Oita facility on August 2nd 2009.

The move by NSE will likely prompt JFE Steel Corporation to consider bringing two blast furnaces of its own back on line. The total domestic output of crude steel per month increased for 3 consecutive months through July on a month to month basis. The domestic crude steel output in July exceeded 7 million tonnes, a recovery to the level last seen in December.

(Sourced from www.yomiuri.co.jp)