Japan Steel Industry Concerns on World Recession

Chairman Shoji Muneoka of Japan Iron & Steel Federation said at a monthly press conference on Tuesday that business condition changed in a month due to the anticipation for world recession caused by US financial crisis and that Japanese steel industry should be concerned on the impact of financial crisis on real economic activities. The chairman said Japanese steel makers may have to decrease their outputs for October-December at the earliest when international steel output may decrease.

Mr. Muneoka, president of Nippon Steel said common steel product market prices are determined by the supply and demand balance or the cost structure while middle-high grade steel product market prices are dominated by the value or competitive power of the products. The president thinks middle-high grade steel products price could not be impacted.

The president also commented on the investment decision in Namisa, Brazilian iron ore mine, by Japanese 5 integrated steel makers and Itochu Corporation. Mr. Muneoka said Nippon Steel needs good iron ore mine but the secure isn’t dominant key against the price negotiation with resource suppliers. The firm will get the mine for increasing demand of iron ore demand, he said.

He also described Japanese steel makers extremely care about the allowance by Australian antitrust regulator against BHP Billiton’s acquisition for Lio Tinto.