Japanese domestic automobile production is likely to become to around 11 million units in fiscal 2006 ending March 2007, according to some sources of Japanese integrated steel makers. The production was originally expected to decrease by 1-2% to 10.7-10.8 million units in fiscal 2006 from fiscal 2005, when the production decreases in April-September 2006 from the same period of 2005 and keeps the level in October-March 2007 from a year ago, under the decrease of domestic auto sales. However, domestic auto production is firmer than expected mainly for export at present and Japanese integrated steels estimate the annual auto production could increase by 100,000-200,000 units from originally forecasted. Additionally Japanese auto makers’ overseas production is expected to exceed domestic auto production for the first time in fiscal 2006. A source of Japanese integrated steel maker said they set steel sheet output and sales plans following the growth of Japanese auto production in both Japan and overseas.Japan Iron and Steel Federation expects Japanese domestic consumption of common steel products would increase by 100,000 tonnes to 13.3 million tonnes in fiscal 2006 from fiscal 2005 thanks to firm demand for automobiles. Integrated steels prospect more common steels demand than the estimate when Japanese auto makers show very strong posture to increase their outputs.
Japan Steel Scrap Composite Prices (Sangyo Press)
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