Japanese sheet steel demand decreases more recently due to slump for all major consuming sectors including automobile, appliances, construction, distributors market and export. The makers’ order receipt fro automobile decreases by 40-50% for January-March from April-September 2008 level while the order decreases by 40% from appliances and by 30-40% from distributors and construction.
Toyota Motor noticed to the business partners the firm will decrease to 9,000 units per day level for domestic production in February and March. The production is around half of the level in April-September 2008. Other makers also reduce the production by reducing the working shift and increasing idle days. The domestic production should be lower level in January-March while Japanese integrated steel makers expected as of early December the production would decrease by around 30% to around 2.35 million units in the quarter from same period of 2008. The parts makers also reduce the steel order to reduce inventory. A source said the steel makers’ order receipt decreases by 50% from office automation equipment makers, by more than 50% from motor makers, by 30% from white appliances and by more than 50% from air conditioner makers. The demand could decrease more when appliances makers expand the production cut. The distributors are also reluctant to buy steel sheet when the inventory was more than 1.8 million tonnes at end of November while the shipment decreases for automotive and appliances parts makers. The sheet steel processors try to reduce the inventory by reducing order to steel makers. The export demand is also slump. Some makers skip the shipment for South Korean rerollers in January-February and their export shipment decreases widely.Japan Steel Scrap Composite Prices (Sangyo Press)
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