Japan Steel Demand Slows Down, Nippon Steel

Nippon Steel expects Japanese steel consumption could decrease by 2.5 million tonnes for fiscal 2008 ending March 2009 from original estimate of 79.5 million tonnes. The demand started to slow even for manufactures under slower economy while domestic construction activity keeps slump. The firm expects the production would decrease even for applications other than construction.

The firm revised the outlook downward in July to around 1 million units for domestic housing start and to less than 60 million square meters for nonresidential building start for fiscal 2008 while the firm expected as of April the building activity would increase from 1.04 million units and 63.77 million square meters in fiscal 2007. The firm expected the construction steel demand would decrease by 1.5 million tonnes from original estimate.

The firm expected the steel demand would increase for automobile, shipbuilding and industrial machinery for fiscal 2008 from fiscal 2007. However, the worldwide slower economy impacts on the manufacturing activity. The firm now expects domestic automobile output could decrease in fiscal 2008 from 11.79 million units for finished car and 8.5 million units for knockdown sets in fiscal 2007. The firm now expects the steel demand for manufacturers could decrease by around 1 million tonnes from original estimate.

Nippon Steel and the group companies reduce the supply for H-beam and stainless steel to meet slower demand. The firm prepares for potential output reduction for manufacturers as early as by the year end.