Japan’s JFE finalises investment in EAF steel plant

Market: Metals
10/04/25

Japanese steel producer JFE has made the final investment decision on its first large-scale electric arc furnace (EAF) plant as part of the company's decarbonisation efforts, it announced today.

JFE will invest ¥329bn ($2.2bn) in a 2mn t/yr EAF steel production facility in western Okayama, aiming to start commercial operations sometime during April-June 2028, according to the firm. This would make it the largest EAF facility by capacity in Japan, the firm said, adding that JFE is likely to replace its existing basic oxygen furnaces (BOF) plant although further details were yet undecided.

JFE initially expected to start mass production in 2027, but it delayed the project partly because the ¥105bn subsidy from the Japanese government was approved only on 9 April, the firm said.

Major domestic steel producers using the BOF method are accelerating their shift to EAFs to meet decarbonisation goals.

The country's largest steel mill Nippon Steel started EAF commercial operations in 2022, and it plans to invest in another EAF plant in the southern Kyushu area. This is to replace the existing BOF facility that is producing 3.6mn t/yr of steel products, according to Nippon.

Kobe Steel, the third-largest domestic steel firm, also announced in May 2024 that it will introduce a new EAF sometime during the 2030s, looking to replace one of the two BOFs at its Kakogawa steel works in the country's western Hyogo prefecture.

Japan aims to hit its net zero emission goal by 2050 and it is critical to reduce greenhouse gas emission from the steel industry, which accounts for 35pc of total emissions in the country's manufacturing industry.

By Yusuke Maekawa

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29/04/25

Japanese ferrous scrap exports remain strong in March

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Indonesia imposes new nickel royalty rates

29/04/25

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29/04/25

Indonesia imposes new nickel royalty rates

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Australia’s Fortescue lifts iron ore sales in Jan-Mar

29/04/25

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29/04/25

Australia’s Fortescue lifts iron ore sales in Jan-Mar

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Carney’s Liberals to form next Canadian government

29/04/25

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29/04/25

Carney’s Liberals to form next Canadian government

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Japan’s coking coal imports extend downtrend in March

28/04/25

News

28/04/25

Japan’s coking coal imports extend downtrend in March

Singapore, 28 April (Argus) — Japan's coking coal imports extended a downtrend in March, reflecting the prolonged downturn in the steel sector, which has weighed on raw material demand. The country imported 2.57mn t of coking coal in March, down by 18pc on the year but up by 5pc from February, according to data from the country's finance ministry. Shipments dropped by 10pc to 8.15mn t in January-March 2025 from a year earlier. Top supplier Australia shipped 19pc less volume from a year earlier at 1.78mn t, and volumes in January-March fell by 18pc from 2024 to 5.59mn t. Arrivals from Canada fell to 192,903t in March, down by over 60pc compared with a year and month earlier, but January-March volumes rose by 11pc on the year to 1.22mn t. Metallurgical coke imports rose by around 30pc on the year and month to 78,729t in March, with volumes in January-March 28pc higher on the year at 255,804t. Crude steel production from basic oxygen furnaces (BOF) rose by 3pc on the year to 5.3mn t. But output could fall in coming months. Japanese steel producer JFE will suspend operations at one of its three BOF in the West Japan Works from around mid-May on the back of lower steel demand in domestic and export markets, the firm announced on 2 April. This is expected to lower annual crude steel output by around 15pc. Meanwhile, the mill will proceed to invest in an electric arc furnace (EAF) facility in western Okayama, which could begin commercial operations in April-June 2028. Other steelmakers such as Nippon Steel and Kobe Steel have also been making the shift from BOF to EAF. The Argus premium low-volatile hard coking coal price fob Australia averaged $174.84/t in March, down by 7pc from February. By Xiuqi Huang Japan's coal imports Origin Mar 25 Mar 24 y-o-y ± % Feb 25 m-o-m ± % Jan-Mar 2025 Jan-Mar 2024 y-o-y ± % Coking coal ('000t) Australia 1,781 2,206 -19 1,522 +17 5,589 6,780 -18 Canada 193 493 -61 554 -65 1,221 1,103 +11 US 297 215 +38 252 +18 743 848 -12 Indonesia 298 230 +29 85 +249 495 329 +50 Colombia 0 0 n/a 25 -100 25 0 n/a Others 0 0 n/a 0 n/a 80 48 +67 Total 2,569 3,144 -18 2,438 +5 8,153 9,109 -10 Met coke (t) China 74,633 57,426 +30 56,445 +32 222,202 188,235 +18 Others 4,096 4,069 +1 3,713 +10 33,602 11,323 +197 Total 78,729 61,495 +28 60,158 +31 255,804 199,558 +28 Source: Japan Finance Ministry Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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