Slower Japan Special Steel Wire Rod Demand

Japanese special steel wire rod production decreased by 6.8% to 701,469 tonnes in fiscal 2008 ended March 2009 from fiscal 2007. The shipment decreased sharply since late 2008 while the supply was short in the first half of fiscal 2008. Kobe Steel expanded the production share.

The top share maker of Kobe Steel’s production share of special steel wire rod decreased by 1.5% to 313,957 tonnes in fiscal 2008 from fiscal 2007. The second largest maker of Nippon Steel’s production decreased by 9.3% to 281,487 tonnes due to expansion working at Kimitsu works. Sumitomo Metals (Kokura) reduced the production by 20.8% to 27,414 tonnes. JFE Bars & Shapes reduced the production by 21.3% to 16,535 tonnes.

The demand hit bottom for export market while the demand is still uncertain for domestic market and high carbon products. The demand is expected to keep firm for Chinese automobile industry and for Southeast Asia. The demand also recovers in USA after inventory adjustment. However, the demand could take 2-3 years to reach the peak level in first half year of fiscal 2008.