Japan Steel Products Demand to Rise by 1.6% in October-December, METI

Japanese steel products demand will increase by 1.6% or 430,000 tonnes to 27.25 million tones in October-December 2006 from July-September 2006 and by 6.4% or 1.63 million tones from a year ago, which Japanese crude steel demand for suitability of shipment will increase by 1.1% or 330,000 tonnes to 29.54 million tonnes and by 5.8% or 1.63 million tonnes, announced by Ministry of Economy, Trade and Industry on Thursday. The output is 1.3% or 387,000 tonnes higher than 28.87 million tonnes of demand estimated by METI. The domestic demand will increase for construction field by increasing for civil engineering, for manufacturing industry such as shipbuilding or industrial machine, and will decrease slightly and keep high production for automobile. The export will continue high level for Japanese users or business partner in China and South Korea. Japanese raw steel output will record second in October-December, 2006 following in October-December, 1973 at 31.27 million tonnes, and record third at 115.73 million tonnes following in 1974 at 117.13 million tonnes.+However, Chinese production which is controlled is unclear in the future in the market price increasing in Asia area. The export from China and South Korea is increasing for Europe and U.S.A. Especially, the export for U.S.A. is expanding to a large degree, while the inventory in U.S.A. is increasing. There is fear that the export causes trade conflict. There is possible that the decrease in U.S.A. market price makes a influence Asia market.Hisayoshi Ando, steel department chief of METI, said that it takes cautious reaction to export for Japanese steel makers, and emphasized the continuance of decent production by Japanese steel maker.