Japan Steel Dealer Associations Give Steady Market Report for 4Q2011

Ministry of Economy, Trade & Industry (METI), Japan, conducted hearings with Japanese 3 steel dealers associations, Japan Steel Products Dealer’s Association, Japan Coil Center Industry Association and Japan Steel Plate Shearing Industrial Guild on Thursday. They reported market demand is currently firm from automobile, truck, construction and industrial machine industries while steel demand related to restoration and redevelopment of disaster areas is likely to generate next year. The associations also noticed concerns on Japanese manufacturing industry’s outflow to overseas due to high yen rate, high raw material price and electric power shortage in winter.

Mr. Yoshihiro Hayashi, chairman of Japan Steel Products Dealer’s Association, gave an outlook that domestic steel market price is expected to upturn for October-December while dealers’ inventory seems still excess against the sales volume. Market inventory is forecasted to decrease by 4.3% to 2.23 million tonnes at the end of September from three months ago and lower by 1.9% to 2.19 million tonnes at the end of December.

Mr. Takashi Suzuki, chairman of Japan Coil Center Industry Association, requested Japanese steel makers should maintain cautious steel supply in balance with market inventory volume though they need to raise their output along car makers’ operative expansion. Coil centers’ shipping volume is expected to increase by 5.3% to 3.95 million tonnes for October-December from July-September. The association forecasts the members’ shipment would increase by 5.3% to 3.95 million tonnes for October-December compared with the previous quarter.

Mr. Ken Takagi, chairman of Japan Steel Plate Shearing Industrial Guild, described demand for processed steel plate is expected to rebound for building materials in and after January 2012 when large building construction projects are scheduled to start and bid tenders for bridge construction increase in and after September.