Nippon Steel to cut 10% of crude steel capacity

Nippon Steel Corp will likely cut about 10% of crude steel capacity by closing both blast furnaces at its Kure site "within a few years" to better compete in the face of rising output in top producer China.

The move comes as Japan's biggest steelmaker by output suffers weakening profit as slumping steel prices in Asia dent its export margins and after a series of suspensions at local facilities caused by typhoons and fires interrupted production.

A senior Nippon Steel executive recently said the firm may close more blast furnaces under plans to reduce domestic facilities and cut costs, as falling demand and lower Asian steel prices eat into profit.

The world's third-biggest steelmaker plans to close two blast furnaces at Kure Works in western Hiroshima, operated by subsidiary Nippon Steel Nisshin, and may even shut down the entire steelworks including processing plants.

Nippon Steel has 15 blast furnaces across Japan, with an annual crude steel capacity of 52 million tonnes. It has already said it plans to close one of its two furnaces at Kure, western Japan, by around March 2024 as well as another at its Yawata Works in Kokura, Kyushu island, by March 2021.

.Asian Metal Copyright A senior Nippon Steel executive recently said the firm may close more blast furnaces under plans to reduce domestic facilities and cut costs, as falling demand and lower Asian steel prices eat into profit.Asian Metal Copyright