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Friday, March 18, 2011

Japan Feb crude steel output +5.7 pct yr/yr,March fall seen

Fri Mar 18, 2011 5:42am GMT

* February output up 5.7 pct yr/yr
* Output down 7.5 pct from Jan, when Sumitomo came back
* Analysts expect further output fall in March

TOKYO, March 18 (Reuters) - Japan's crude steel output rose 5.7 percent in February from a year earlier to 8.93 million tonnes, the Japan Iron and Steel Federation said on Friday.

Output, which is not seasonally-adjusted, declined 7.5 percent from January.

January's strong month-to-month output increase was due to a production boost by Sumitomo Metal Industries Ltd, Japan's No.3 steel mill, whose production was affected by troubles at its blast furnace in November and December.

Analysts expect Japan's crude steel output for March to drop further following the disruption to operations after the disastrous earthquake that hit eastern Japan on March 11.

Japan's big two Nippon Steel Corp and JFE Holdings Inc have resumed operations of blast furnaces idled after the quake since Sunday, but government-imposed power cuts are expected to sharply reduce their production in March.(Reporting by Yuko Inoue; Editing by Ed Lane,sourced Reuters)

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