Japan Steel Tube Output Keeps High for Automobile

Japanese steel tube makers’ output for automobiles for January-March is expected to keep the level as high as October-December, though lower by 20-30% from the peak level in the first half of 2008, according to Japanese major welded steel tube maker source. Demand for automoive steel tube rapidly recovered for October-December 2009 thanks to Japanese automakers’ firm output and sales.

Domestic automakers and automotive component makers completed inventory adjustment in the first half of 2009 and increased the sales thanks to car tax reduction or scrap incentive by the government. Demand for automotive steel tube hit bottom in June 2009 and welded steel tube makers’ output gradually increased. Most makers’ productions rebounded to 70-80% for October-December 2009 compared with the peak level.

Domestic steel tube demand maintains low for building materials, construction machines or industrial machines. Meanwhile, steel tube output for automobiles is expected to keep higher level.