STEEL MILLS IN JAPAN WILL LOWER PRICES WHILE SIMULTANEOUSLY IMPROVING PRODUCT QUALITY.

The nssc company (nssm), which is the largest steel manufacturer in Japan, has plans to shut down the blast furnace in the factory that is the oldest of the three that are located in kimitsu in the fiscal year 2015, as well as the blast furnace in the plant that is the only one that is located in the kobe steel plant, in the 2017 fiscal year. When it comes to nssc enterprises, this year marks the first time since 1993 that production has been optimized, and when it comes to kobe steel, this year marks the first time that production has been restructured since 1987. In light of the fact that Japanese car and electronic equipment manufacturers are actively expanding production overseas, domestic demand for steel is not likely to increase. Additionally, domestic steel mills face growing competition from steel mills in China and South Korea; therefore, lowering production costs and improving production efficiency is essential to the survival of the steel industry. The demand for steel in Japan dropped from 79 million tons in the fiscal year of 2007 to 61 million tons in the fiscal year of 2012. Domestic demand for steel is forecast to drop to fewer than 55 million tons by the chief executive officer of kobe steel in Japan, hiroyakawasaki. This prediction is based on the decreasing population of Japan and the rising production of automobiles elsewhere. as a result of the excess of steel in East Asia, as well as the competition from steel mills in China and South Korea, Japanese steel mills have been forced to improve their production efficiency and cut their expenses. According to the numbers provided by the World Steel Association, China was responsible for 46 percent of the world’s total production of crude steel in 2012, which represented an increase of 1.2 percent over the previous year’s output. nssc president hiroshitomono issued a warning that the supply and demand for steel in east Asia has reached a highly precarious level, since china’s steel output is expected to continue to increase. In addition, Chinese and South Korean steel mills have plans to start production of new steel mills in the year 2015, which would only make the surplus problem worse. In recent years, Japanese steel mills have been under pressure to lower their pricing, which may be compared to a decline of around 20–30 percent in the price of steel during the 2008 fiscal year. In addition, the devaluation of the yen causes an increase in the price of japanese imports of raw materials such as iron ore and coking coal, which would certainly consume a portion of the profits made by japanese steel mills. The upstream production equipment and operations at the kobe steel factory will all be transferred to the kakogawa factory when the factory at kobe is shut down. This will result in the production operations becoming more reasonable, it will be possible to eliminate the oversupply in the upstream, and it will improve cost competitiveness. It is anticipated by kobe steel that the yearly cost will be reduced by more than 15 billion yen as a result of the closure of the plant blast; nevertheless, the rationalization of production may have a detrimental effect on the regional economy in the form of downsizing and taxation. jfe steel company, another large mill in Japan, has plans to develop a new facility in fukuyama using the new technology. This will allow for a significant reduction in the quantity of coal and other raw materials used in the production of iron. If you are looking for a provider of high-quality steel angle, erw steel pipe, or carbon steel seamless pipe in China, go no further than ontrend industrial limited. If you have any requirement, please do not hesitate to contact our website.

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