Japan Steel Demand to Drops in April-June, Nippon Steel

Nippon Steel expects Japanese steel demand decreases by 560,000 tonnes to around 19.08 million tonnes in April-June from same period of 2007. The firm sees the demand increases by around 250,000 tonnes for manufacturers while the construction demand decreases by 810,000 tonnes compared with temporally boom in April-June 2007 before new building standard law. The firm estimates the demand could increase by 1.55 million tonnes to 79.54 million tonnes for fiscal 2008 started April from fiscal 2007. The carbon steel demand decreases by 650,000 tonnes in April-June from same period of 2007, according to the estimate. The demand increases by 160,000 tonnes to 9.29 million tonnes for manufactures and decreases by 810,000 tonnes to 5.97 million tonnes for construction. The building demand of construction decreases by 830,000 tonnes to 4.53 million tonnes while the civil work demand increases by 20,000 tonnes to 1.44 million tonnes. The special steel demand increases by 90,000 tonnes to 3.82 million tonnes. The firm estimates the carbon steel demand increases by 1.2 million tonnes to 63.99 million tonnes for fiscal 2008 from fiscal 2007 while the special steel demand increases by 350,000 tonnes to 15.55 million tonnes. The firm expects the carbon steel demand increases by 580,000 tonnes to 25.66 million tonnes for construction and by 620,000 tonnes to 38.33 million tonnes for manufacturers. The firm expects the housing start will be 1.08 million units for fiscal 2008 compared with 1.03 million units in fiscal 2007 while the nonresidential building start will increase to 68 million square meters of floor space from 63 million square meters. The firm expects shipbuilding start increases to 19 million gross ton from 18.2 million gross ton while the automobile output increases to 11.8 million units for finished car and to 8.98 million units for knockdown sets from 11.79 million units and 8.49 million units respectively.