Slightly Lower Japan Raw Steel Output in F2012, Industry Official

Japan Iron and Steel Federation’s chairman Eiji Hayashida said at monthly press conference on Thursday Japanese raw steel output would be slightly less in fiscal 2012 started April than 106.4 million tonnes in fiscal 2011 despite uncertain business condition in second half of the year. He said Japanese domestic steel demand decrease would be less than 1 million tonnes. The president of JFE Steel said the demand increases by 400,000-500,000 tonnes for construction including rebuilding demand for the major earthquake damaged area. He said the shipbuilding demand could decrease by near 1 million tonnes while the automobile demand keeps the level.

Mr. Hayashida said Japanese raw steel output would be 26 million tonnes level in April-June under current inventory status while the output was 26.5 million tonnes in January-March. He said the output in July-September would be in line with April-June level despite of uncertain power supply condition.

Mr. Hayashida said management should fight against infringement of company’s intellectual property and marketing secret in general. He said as president of JFE Steel the firm has written oath from retired engineers but the system is not perfect system.

Mr. Hayashida said JFE Steel seeks alternative coking coal sources to cover lower shipment from Australia due to force majeure by major miner and the firm could secure requirement. He expects JFE Steel’s raw steel output is around 7 million tonnes in April-June.