Nippon Steel Sees Slight Higher Japan Steel Demand in 1H

Nippon Steel expects the domestic steel consumption is around 39.28 million tonnes in April-September, which is 60,000 tonnes higher than same period of 2006. The firm sees the demand is 20.04 million tonnes in July-September, which is 60,000 tonnes higher than same period of 2006. The firm expects the full year demand increases by 350,000 tonnes to around 79.97 million tonnes for the year to March 2008 from previous year when the demand keeps high level. The firm expects the carbon steel demand is flat at 16.15 million tonnes in July-September from same period of 2006 while the special steel demand increases by 60,000 tonnes to 3.89 million tonnes. The firm estimates the carbon steel demand increases by 100,000 tonnes for manufacturers while the demand decreases by 100,000 tonnes for construction. The firm expects the carbon steel demand decreases by 30,000 tonnes to 31.68 million tonnes in half year to September from same period of 2006 while the special steel demand increases by 270,000 tonnes to 13.44 million tonnes. The firm sees the carbon steel demand increases by 240,000 tonnes to 18.24 million tonnes for manufacturers while the demand decreases by 270,000 tonnes to 13.44 million tonnes. The firm expects the carbon steel demand increases by 140,000 tonnes to 64.72 million tonnes for the year to March 2008 from previous year while the special steel demand increases by 210,000 tonnes to 15.25 million tonnes. The carbon steel demand increases by 500,000 tonnes to 37.39 million tonnes for manufacturers while the demand decreases by 360,000 tonnes to 27.33 million tonnes. The firm estimates the automotive knockdown sets output increases to 8.21 million units for the year to March 2008 from 7.66 million units previous year while the finished car output is flat at 11.5 million units due to slower domestic demand. The firm expects the steel demand keeps firm for manufacturers when domestic shipbuilding start increases to 18 million gross ton from 17.5 million gross ton. The firm estimates the housing start decreases to 1.27 million units from 1.29 million units and nonresidential building start decreases to 71.04 million square meters from 72.11 million square meters.