Japan Steel Demand Rises by 11.8% for Jul-Sep

Japanese steel products demand is expected to increase by 11.8% to 20.71 million tonnes for July-September from April-June while to decrease by 25.1% from the same period of 2008, announced Ministry of Economy, Trade & Industry (METI) on Monday. Raw steel demand is estimated to increase by 14.3% to 21.77 million tonnes for July-September from April-June while to decrease by 28.5% from the same period of last year.

METI estimates automobile output increases thanks to the progress of inventory adjustment. Public projects and export to Asia, China or Thailand are also expected to increase. Crude steel output will increase for 2 consecutive quarters. Crude steel production will exceed 20 million tonnes for the first time in late 3 quarters. Japanese steel demand seems to hit the bottom.

METI estimates completed car output increases by 26.5% to 2.15 million cars for July-September from April-June while knock down set output increases by 10.7% to 1.55 million sets. Moreover, METI prospects steel export to Asia such as China or Thailand increases when automobile output becomes active at overseas along the progress of inventory adjustment.

Japanese steel sheet inventory was below 3.8 million tonnes at the end of May. Japanese plate inventory is decreasing, too.