A move by Japanese steel maker JFE Steel to expand its production capacity will likely lift its consumption of coking coal.
JFE is spending 29bn ($319mn) to expand the capacity of its No.3 furnace at its Fukuyama steel mill, amid expectations of rising domestic and international demand.
The company will not comment on its increased coking coal consumption, but it could be as much as 1.8mn t/yr on the basis of 0.5-0.6t of coking coal used to produce a tonne of steel.
The furnace expansion will help boost the company's total steel production capacity to 33mn t/yr against 30mn t/yr in the 2009-10 fiscal year. The No.3 furnace has been off line since February 2009, when the global economic downturn hit demand for steel products.
JFE is spending 29bn ($319mn) to expand the capacity of its No.3 furnace at its Fukuyama steel mill, amid expectations of rising domestic and international demand.
The company will not comment on its increased coking coal consumption, but it could be as much as 1.8mn t/yr on the basis of 0.5-0.6t of coking coal used to produce a tonne of steel.
The furnace expansion will help boost the company's total steel production capacity to 33mn t/yr against 30mn t/yr in the 2009-10 fiscal year. The No.3 furnace has been off line since February 2009, when the global economic downturn hit demand for steel products.
