Ministry of Economy, Trade & Industry conducted hearings with Japan Coil Center Industry Association on Tuesday and the association reported the member coil centers’ shipment volume is decreasing for car industry for April-June compared with January-March. The association explained the shipment is also slowing for tooling machines and electric control equipments though the demand was steady in January-March. The association forecasted the members’ shipment volume would increase by 9.8% to 4.19 million tonnes for July-September compared with the same period of 2011. By year-to-year comparison, Japanese car makers’ production is high and steel demand recovery is expected for reconstructions in the disaster areas of the Japan Earthquake.
The association explained the members’ shipment volume is estimated to increase by 28.2% to 3.989 million tonnes for April-June against the same period of 2011. The half-year shipment for April-September would increase by 18.1% to 8.179 million tonnes from the corresponding period of 2011. The half-year shipment for April-September could reach 8 million tonnes for the first time since fiscal 2008. By areas, the quarterly shipment is forecasted to increase by 7.8% to 1.66 million tonnes in North Japan, increase by 11.4% to 1.33 million tonnes in Tokai area, increase by 11.9% to 970,000 tonnes in Kansai area, and increase by 7% to 230,000 tonnes in Chugoku and Kyusyu areas compared with the same period of 2011. The association reported the members’ current voices that coil centers are concerned how electricity shortage of this summer affect Japanese manufacturing industry and coil centers’ shipment volume, or that coil centers are suffered from worse profitability due to car makers’ price cut for material supply to component makers and steel makers’ price hike against distributors.Japan Steel Scrap Composite Prices (Sangyo Press)
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