Japanese Pig Iron Demand Increases 3-5% for Casting in F2008

Japanese pig iron demand for casting is expected to increase by 3-5% in fiscal 2008 at the ended of March 2009 from fiscal 2007. Japanese casting product output increased to 5.03 million tonnes by 2.3% in fiscal 2007 from fiscal 2006, which is expected to increase same rate in fiscal 2008. The demand of pig iron made by Japanese integrated steel makers is forecasted to increase. However, pig iron supply and demand is likely to become tighter when makers must keep higher output of steel products. Japanese casting products output increased by 17.8% in fiscal 2007 from fiscal 2002 thanks to strong demand for automobile, construction machinery components or casting iron tube. Japanese finished cars and knockdown sets outputs are forecasted to increase to 21 million cars and sets by 2-3% in fiscal 2008 from fiscal 2007. Construction and industrial machinery outputs are increasing. Pig iron consumption for casting increased to 690,000 tonnes by 5.2% in fiscal 2007 while ferrous scrap consumption for casting slightly increased to 3.26 million tonnes by 1.8% when ferrous scrap are increasing impure substance with high functionalization of steel products. Pig iron for casting is made by Nippon Steel and Kobe Steel, which is imported at 70,000 tonnes per year from Brazil or South Africa.