Bloomberg reported that Nippon Steel Corporation is asking mining companies to cancel some deliveries of iron ore and coking coal as it reduces production.
Mr Toshifumi Matsui spokesman of Nippon Steel said that it sought the changes after deepening its output cuts in the second half of the year because of falling demand. Sumitomo Metal Industries Limited was also considering cancellations.
Mr Masafumi Yasuoka senior executive officer at Mitsui OSK Lines Limited said that "From one month ago Japanese steelmakers started asking us to ship ore and coal at a slower pace. He added that mills sought a 5 day to 7 day extension to a return voyage that typically requires 20 days.
Nippon Steel plans to lower output by about 2 million to 2.2 million metric tonnes in the 6 months to March 31st 2009 as compared with the first half.