Higher Special Steel Bar, Wire Rod Demand in Japan

Japanese steel makers increase the special steel bar and wire rod output more in fiscal 2007 started April from 10.78 million tonnes in fiscal 2006, which was 56% higher than that in fiscal 1998. They try to meet growing demand for automobile and construction machinery. However, the supply could get tighter after October due to higher demand despite domestic bar and wire rod makers operate at near full capacity. The steel products is estimated to be used 50-60% for automobile and around 20% for construction machinery in materials for critical safety parts, driving system, bolt, nut, gear, bearing and cable. The domestic output increased by 58% to 6.48 million tonnes for special steel bar and by 53% to 4.3 million tonnes in fiscal 2006 from 1998. Japanese automobile output increased to 11.5 million units for finished car in fiscal 2006, which was 17% higher than the bottom of fiscal 2001. The knockdown sets output increased to 7.65 million units in fiscal 2006 from 6.7 million units in fiscal 2003. The output is expected to reach 11.5 million units for finished car and 8.2 million units for knockdown in fiscal 2007. Japanese construction machinery shipment increased to 2.084 trillion yen in fiscal 2006, which was more than double of recent bottom of 961.2 billion yen in fiscal 2001. The shipment is expected to reach 2.35 trillion yen in fiscal 2007 and 2.537 trillion yen in fiscal 2008.