Japan Raw Steel Output to Hit Record at More Than 120M tonnes

Japanese raw steel output could reach 120 million tonnes for fiscal 2007 ending March 2008. The output increases with high level domestic demand for manufacturers and record level export at more than 36 million tonnes annually. The output would keep more than 110 million tonnes for 5 years in a row while the output reached 110 million tonnes only 4 times before that. The output keeps high level in fiscal 2007 started in April. The output increased by 3.2% to 29.89 million tonnes in April-June from same period of 2006 when the export increased by 2.0% to 9.14 million tonnes while the special steel products output increased by 2.3% to 5.29 million tonnes. The raw steel output level is annualized 121.5 million tonnes renewing former record of 120.01 million tonnes in fiscal 1973. The export is expected to keep firm due to higher demand for high valued steels from offshore buyers including transplants of Japanese manufacturers. Japanese steel demand is also likely to keep firm due to high level activity of domestic manufacturers including shipbuilders and automakers. The raw steel output increased by 4.5% to second high of 117.75 million tonnes in fiscal 2006 from fiscal 2005. The output was high level when the export hit third high at 35.91 million tonnes and the special steel output hit record 20.27 million tonnes.