Japanese steel production shows mixed trend in past 10 years. The converter special steel production increased by 50% to 17 million tonnes in fiscal 2011 ended March 2012 from fiscal 2000 while electric furnace carbon steel output decreased by 20% to 17.8 million tonnes. The special steel production increased due to higher demand for global operations of automakers and other manufacturers while domestic construction demand decreased. The steel makers have to revise the supply bases under historical high yen rate and changing demand conditions.
Japanese automobile output was 8.4 million units in 2011 compared with 10.14 million units in 2000 and around 11.5 million units in 2006-2008. Japanese automakers’ offshore production increased to record 13.38 million units in 2011 compared with 6.29 million units in 2000 and first 10 million units in 2005. Japanese steel makers try to meet the growing demand especially for special steel products including high tensile steel. Japanese construction demand decreased during the period. The non residential building start was 47 million square meters in fiscal 2011 compared with 70 square meters in fiscal 2000. The housing start was 830,000 units in fiscal 2011 compared with more than 1.2 million units in fiscal 2000. Japanese raw steel output was 106.5 million tonnes in fiscal 2011 as the level in fiscal 2000. Japanese integrated steel makers expanded the special steel output capacity to meet growing demand for high grade steel products while the electric furnace steel makers have almost same level of production capacity despite of the lower production.Japan Steel Scrap Composite Prices (Sangyo Press)
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