Japan Special Steel Makers Mull Output Reduction

Japanese special steel makers are forced to adjust their output volumes when domestic automobile production slumbers. Special steel makers’ order acceptance is not largely decreasing while special steel inventory is gradually increasing at dealers’ sites. Some of special steel makers are deliberating output reduction. Meanwhile, the demand is expected to increase in and after summer along automobile output recovery in or after July. Special steel supply may turn tight when the demand recovers. Special steel makers should cautiously watch and adjust supply volume along demand conditions in the first half of fiscal 2011 (April-September).

Honda Motor starts car on April 11th. Japanese automobile makers are likely to restart normal operations in or after July. Automotive component export keeps steady when car sales maintain active in overseas markets. Automakers are deliberating how to keep stable operations even when TEPCO’s planned power outage would be carried out this summer. In autumn, automakers are likely to enter output expansion.

Japanese special steel production is estimated at 5.42 million tonnes for January-March, as high as the peak level before Lehman’s fall. Special steel makers had maintained full operation before Japan Earthquake.