Firm Japan Cold Finished Bar and Wire Output

Japanese output of cold finished steel bar and steel wire for cold heading keeps high level. The shipment increased by 3.1% to 325,600 tonnes in July-September from same period of 2005, according to the national industry group. The output is expected to keep firm in the second half year to March 2007 without sign for slower demand for machinery along with expansion by bar and wire makers. The shipment increased by 2.7% around Tokyo, by 3.1% around Nagoya and by 3.3% around Osaka in July-September from same period of 2005. The cold heading wire shipment grows higher than cold finished bar around Tokyo and Nagoya while the cold finished bar shipment increases more than cold heading wire around Osaka. The averaged monthly inventory was 67,000 tonnes in July-September, which was 1.9% lower than April-June and 5.2% lower than same period of 2005. The inventory was 67,280 tonnes in September, which was 1% higher than August and 5.2% lower than a year earlier. Cold heading wire is used mainly for automotive parts including bolt and nut while cold finished bar is used for parts of automobile and industrial and construction machinery. Japanese vehicle output increased by 7.5% to 4.53 million units in April-August from same period of 2005. The firm demand lifts the long steel products demand.