METI Reviews Domestic Crude Steel Output Forecast for Oct-Dec

Japan, Ministry of Economy, Trade and Industry (METI) will review domestic crude steel output forecast for October-December by re-hearing major steel makers’ output plans within this month. METI announced domestic crude steel output outlook for October-December at 28.202 million tonnes on October 29. The figure is higher by 4.5% than METI’s crude steel demand forecast and by 3.1% than the estimated output in July-September. Domestic economy turned to downward mood and offshore steel market is in adjustment phase. Additionally strong yen trend impacts Japanese export. Steel makers may lower their crude steel output plans.

METI hear crud steel and steel product output plans of domestic integrated steel makers and special steel makers each quarter. For October-December output forecast, METI implemented hearing among integrated steels in early-mid October and among special steel makers in September. The latest market downtrend hasn’t been reflected fully on their output plans then. Steel market conditions changed in latest 2 months. METI reviews the market circumstances.

Crude steel output plan for October-December would hit the highest since Lehman’s fall including inventory replenishment by some of integrated steel makers or output rebound by electric furnace steel makers after seasonal down operation in July-September. However, actually, automobile sales decreased when Japanese government’s stimulus measure closed. Japanese hot, cold and coated sheet steel inventory totaled 3.81 million tonnes at the end of September, higher by 200,000-300,000 tonnes than the level said moderate.

Chinese steel demand grew stagnant. European and American economies are slowing, too. Higher yen rate seems to impact Japanese export of automobiles and appliances as well as steel products. JFE Steel lowered its crude steel output plan for October-March and other steel makers are likely to review their output plans, too.