Japanese raw steel output will become to 30.221 million tonnes in October-December, increasing by 3.9% or 1.137 million tonnes from July-September and by 8.3% or 2.309 million tonnes from a year ago, announced Ministry of Economy, Trade and Industry on Monday. The output in the quarter will exceed 30 million tonnes for the first time in 33 years since 31.27 million tonnes in October-December 1973. The output will become higher by 2.3% or 681,000 tonnes than 29.54 million tonnes originally estimated by METI. Steel demand is expanding for automobile, shipbuilding and construction in Japan. Japanese steel makers are recently shipping more steel for domestic market, while the export is slightly increasing as well. Raw steel output is expected to increase by about 390,000 tonnes at Japanese integrated steel makers and by about 740,000 tonnes at electric furnace steel makers in October-December from July-September. The annual raw steel output will increase by 3.4% to 116.29 million tonnes in 2006 from 2005, which will turn to the increase after 2 years and mark the third highest record. The raw steel output will become to the second highest as in October-December period after 31.27 million tonnes in October-December 1973, while become to the third highest as quarter record after 30.24 million tonnes in July-September 1973. METI reported the high level output plan reflected the firm steel demand for automobile, shipbuilding and construction. However, METI warned Chinese steel export is increasing for Europe with Chinese rapid output increase, while in the U.S.A. homebuilding is decreasing and inventory to shipment ratio stays high at over 3 months at coil centers.
Japan Steel Scrap Composite Prices (Sangyo Press)
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