Japanese output of hot rolled special steel products will decrease by 2.6% to 5.294 million tonnes in April-June from January-March, which is the first drop in 4 quarters, according to Ministry of Economy, Trade and Industry. The estimated output is 1.9% higher than demand outlook by METI as of March. However, the output decreases from previous quarter due to lower automobile output and output reduction under less availability of ferrous scrap.
METI expects the export also decreases in April-June from January-March due to the slower US demand for high tensile steel under slow automobile market. The output decreases by 1.1% to 3.839 million tonnes for domestic market and by 6.4% to 1.455 million tonnes for export in April-June from January-March. The output for domestic market decreases for 7 items including mechanical carbon steel and alloy steel and high tensile steel in April-June from January-March while the output increases for tool steel and bearing steel after the inventory adjustment. The stainless steel output increases for flat products while the stainless long products output will decreases. The output for export increases for 5 items including tool steel, spring steel and stainless steel in April-June from January-March while the output of the other 4 items including high tensile steel will decrease. See attached table.Japan Steel Scrap Composite Prices (Sangyo Press)
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