Japan Special Steel Bar and Wire Rod Sales Stays Low in April

Japanese domestic sales of special steel bar totaled 163,127 tonnes in April while the sales of special steel wire rod were 139,942 tonnes, according to the statistics by Ministry of Economy, Trade & Industry. Special steel bar sales decreased by 70.8% from a year earlier and by 8.9% from a month ago. Special steel wire rod sales decreased by 61.4% from a year earlier and by 1.6% from a month ago. A maker source said the demand from automobile industry bottomed out while the order recovery is still slight from construction machines and industrial machines. Several sources consider the demand might not rebound from construction machines within 2009.

Domestic shipment of cold-finished special steel bar and special steel wire for cold forging maintained low even in May, the materials of those which are special steel bar and wire rod. The product makers suppose the demand hit the bottom but their shipment stays at a half level compared with a year earlier. Current demand seems sustained by small cars and hybrid cars. Some makers are concerned about lower order ratio from conventional cars and lower special steel consumption in a car.

As to the export of special steel bar and wire, the demand is stable from China for automobiles and construction machines while the negative effect is expected by bankruptcy of Chrysler and General Motors in USA.

For January-March 2009, domestic sales of special steel bar totaled 603,640 tonnes, down by 66.2% from the corresponding period of 2008 and by 60.2% from the previous quarter. Special steel wire rod sales totaled 463,570 tonnes, down by 60.5% year-to-year and by 50.2% quarter-to-quarter.