Japanese steel demand for automobile is accelerated to shift to offshore market. Japanese integrated steel makers expect the automotive steel export will renew record volume in fiscal 2010 ending March 2011 as fiscal 2009. The export is expected to renew record in fiscal 2011 when domestic automakers plan lower domestic production due to higher demand in offshore market and higher yen rate. Some integrated steel makers could export more automotive steel than the shipment for domestic market.
Japanese automakers plan 9.218 million units of finished car production and 9.414 million units of knockdown sets in fiscal 2011, which is 2.5% lower and 10.5% higher than fiscal 2010 level. The finished car production starts to recover in second half of fiscal 2011 while knockdown production will shift to local production at offshore sites. Automakers try to shift the production from Japan to offshore countries to meet growing demand especially in Asian countries while the makers try to improve the profitability under higher yen rate. Japan Automobile Manufacturers Association’s chairman or Nissan Motor’s COO Toshiyuki Shiga said the makers shift the production to offshore plants.Japan Steel Scrap Composite Prices (Sangyo Press)
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