Japan Crude Steel Output to Reduce by 1.4% for Jan-Mar

Japanese raw steel output is estimated to decrease to 30.439 million tonnes in January-March, down by 1.4% or 434,000 tonnes from October-December 2007 while up by 3.1% or 912,000 tonnes from the corresponding period of 2007, announced Ministry of Economy, Trade & Industry on Wednesday. The output is expected to hit 30 million tonnes for the first time in January-March and exceed record 29.53 million tonnes in January-March 2007. The steel export will increase due to strong demand at overseas and the strong production at Japanese makers’ overseas plants such of automobiles. However, Japanese integrated steel makers forecast domestic demand would decrease by over 200,000 tonnes under the influence of new Japanese building standard law. Electric furnace steel makers will reduce the output by 15-30%.The Ministry analyzed the demand keeps firm for manufacturing industry such as automobile, shipbuilding, industrial machine and construction machine in January-March 2008. Meanwhile, the Ministry pointed out the makers has prospects of the output reduction in April-June when Japanese steel sheet inventory keeps high level at 4.1 million tonnes at the ended of December 2007 or the inventory of Japanese reinforcing steel bar is increasing, too.The steel products output increases by 6% in January-March 2008 from October-December 2007 when overseas demand is expanding and Chinese export to Japan is decreasing. Special steel output increases for export due to rising automobile production. Japanese raw steel output will increase by 2.9% or 3.36 million tonnes to 121.11 million tonnes in fiscal 2007 at the ended of March 2008 from fiscal 2006, which represents highest after fiscal 1973, announced by Ministry of Economy, Trade and Industry.The steel products output increases by 2.4% or 2.49 million tonnes to 105.55 million tonnes in fiscal 2007 from fiscal 2006, which achieves record after fiscal 1990. The carbon steel output increases by 2.8%or 2.29 million tonnes to 85.16 million tonnes. The special steel output increases by 0.9% or 200,000 tonnes to 21.49 million tonnes, which achieves record after fiscal 2006.