Nippon Steel Corp is considering the possibility of stopping the blast furnaces in Kimitsu in the East of Japan, to cope with the sharp drop in demand, said a source in the group of companies on Friday following the recent decision of the company to temporarily shut down two blast furnaces in Kashima and Wakayama.
This step is the largest steel producer in Japan caused a further decline in steel demand in the construction sector following the recent suspension of the project by local construction companies under curbing the spread of the coronavirus among their workers.
last week, Nippon Steel said it will temporarily close two blast furnaces at the end of this month, reducing to approximately one-tenth of their capacity in response to a sharp drop in steel demand.
a Representative of Nippon Steel said that no further decisions on the adjustment of production was not.
"We don't know when we will resume these furnaces", - said the press Secretary of the company, adding that Nippon Steel plans to reduce the purchase of raw materials such as iron ore and coking coal.
Earlier it was reported that blast furnace puts out another steel producer in Japan, JFE Steel, owned by JFE Holdings. While the metallurgical capacity of the company will be reduced by 25%. The last time the company took such a step in 2009, when the global financial crisis adversely affected the demand for steel.
