Nippon Steel, Japan's largest steelmaker, plans to further cut steel production in response to a sharp decline in demand for steel products caused by the slowdown in global manufacturing during the coronavirus epidemic.

Nippon Steel has decided to suspend production of two blast furnaces later this month. The company plans to put the No. 1 blast furnace in the warehouse in the middle of this month, or temporarily separate it from the explosion, while the No. 1 blast furnace in Kansai will be put in the warehouse at the end of April. The production capacity of the two blast furnaces is about 6.4 million tons / year.

The company also plans to adjust or suspend production of some coke ovens in eastern Japan and Kansai to meet plans to reduce blast furnace operations.

Nippon Steel does not rule out further production cuts as it promises to continue to respond quickly to any changes in demand for steel products in Japan and abroad.

Japanese steelmakers have been cutting prices as domestic carmakers began to cut production, sharply curbing demand for steel products. In the fiscal year from April 2019 to March 2020, crude steel production will decline for the third consecutive year, falling below 100 million tons for the first time in 10 years.

In February this year, Nippon Steel cut its crude steel production forecast to 47 million tons in 2019-2020, 1 lower than that in 2018-19. The company operates 15 blast furnaces with a total steel production of 52 million tons per year, but plans to reduce its capacity by 10 in the next few years.