Integrated Steels Expand the Share in Japan Market

Japanese raw steel output increased by 0.7% to 56.79 million tonnes in the first half of the year of fiscal 2005 ending March 2006 from same period of last year. The output was third highest level after fiscal 1973 and 1974 due to firm demand mainly from domestic manufactures. The converter steel output increased by 2.9% to 42.47 million tonnes while the electric furnace steel output decreased by 5.1% to 14.32 million tonnes. The integrated steel makers increased the output while the electric furnaces reduced the output. Japanese raw steel output is expected to decrease by 0.3% to 112.66 million tonnes in fiscal 2005 from fiscal 2004. The output is likely to keep more than 110 million tonnes for 3 years in a row though the output will decrease in the second half of the year from same period of last year, which is first decrease in 4 years, when the integrated steels reduce output for export and to reduce domestic sheet steel inventory.