Japan Special Steel Demand Forecasted to Increase by 0.6% for Jan-Mar 2011

Ministry of Economy, Trade & Industry announced domestic and export demand forecast for special steel products at 5.13 million tonnes for January-March 2011, increasing by 0.6% from October-December 2010. The demand is expected to rebound after 2 quarters. The demand for domestic market is forecasted to decrease slightly due to car makers’ output reductions after determination of eco-car subsidy in September. Meanwhile, the demand for export is expected to keep increasing. Japanese export of completed car and car components is expected to increase. Construction machinery output is also expected to keep firm.

Domestic demand is estimated to decrease by 1.7% for SC steel for January-March 2011 from October-December 2010, by 2.5% for alloy steels applied to machine structures, and by 1.9% for bearing steel. Meanwhile, the demand is forecasted to increase by 2.2% for high tensile steel sheet. Stainless steel long products would increase slightly while sheet products would decrease slightly.

The export of stainless sheet is forecasted to decrease by 6% due to higher yen rate. The export is estimated to increase by 6.8% for high tensile steel sheet. The export is also expected to increase for other products thanks to steady demand for automobiles and construction machines in foreign countries.