The shutdown of two steelmaking plants under Japan's iron making company will affect the company's performance

2019-11-07


Affected by typhoon No.15, the No.1 Steelmaking Plant of Japan's junjin iron making Institute is expected to be repaired by the end of December due to the collapse of the chimney, and production will be resumed in January next year. The special steel produced by No. 1 steel plant has been replaced by two plants, Bafan and Muran. Some of the steel products are supported by other plants. At the same time, the semi-finished products (ingots and billets) produced by other steel plants are transported to junjin for subsequent production. Despite the inevitable reduction in production in junjin, Japan's iron industry, in close consultation with its partners, including auto companies, is trying to minimize the impact.

In addition, No. 1 steelmaking plant of Nissi Wusteel works was shut down due to fire accident. The special steel base materials produced by Japan's Wakayama and Bafan plants will be transported to Wu Iron Works, which will carry out the subsequent processing. No. 1 steelmaking in Wu factory produces a special steel plate, which is mainly used for automobile tire parts, etc. According to relevant sources, Nippon Steel is trying to minimize the impact by coordinating with Nippon Steel and other partners. The No. 1 steelmaking plant of Wu plant is seriously damaged by the fire, which is expected to take longer to recover. The details of repair are still under discussion, and the impact on production has not been determined.

However, the two measures are difficult to avoid the increase of logistics costs and other costs, and the performance of Japan's iron industry is inevitably affected. (From Csteel)