Japan Raw Steel Output Rises by 0.5% in Jan-Mar

Japanese raw steel output will increase by 0.5% to 26.745 million tonnes in January-March from October-December, announced by Ministry of Economy, Trade & Industry (METI) on Monday. The output, which is 52% higher than the same period of 2009, is 0.1% higher than 26.72 million tonnes of the demand estimated by METI. The slow construction demand reduces the output by electric furnace steel makers by around 120,000 tonnes from October-December while the output by integrated steel makers increases by around 330,000 tonnes.

With the output in January-March, the annual output will be 96.683 million tonnes in fiscal 2009 ending in March 2010, which is 8.4% lower than in fiscal 2008 and decreases to less than 100 million tonnes for the first time in 10 years.

The carbon steel production will decrease by 8.5% to 67.669 million tonnes in fiscal 2009 from fiscal 2008 while the special steel output decreases by 15.1% to 15.618 million tonnes. The special steel output decreases for 2 years in a row and hits the lowest level since 15.61 million tonnes in fiscal 2001.

METI said the output is supported by export in January-March. The export represents 9.045 million tonnes of 23.541 million tonnes of steel products’ output in January-March. METI also warns domestic steel inventory held by the makers and distributors increased for 3 months in a row through December.

The domestic construction demand is very slow in January-March while the manufacturers’ demand is firm for automobile and construction machinery. The special steel demand increases in January-March from October-December both for domestic and export demand due to firm demand for automobile and energy industry while the stainless flat steel demand decreases due to slow construction demand and higher inventory.