Japan Welded Tube Output for Automobile Begins to Recover

Japanese demand of carbon steel tube for automobile shows a sign to bottom out. One major welded steel tube maker said both automakers and auto parts makers have finished the inventory adjustment and order from them is recovering after May. The production of steel pipe for automobile by welded tube makers would recover to the level at 60-70% of fiscal 2008 ended March 2009 until the end of March 2010.

Welded tube makers’ production of electric resistance welded tube decreased by 40-60% after January from a year earlier level when the automobile and construction demand significantly declined. The output decrease was 20-30% for November-December 2008 compared with same period of last year.

However, one maker source says, the production of tube for automobile use is increasing after May when automakers and parts makers finished the inventory adjustment in March-April. The demand for automobile pipe would recover gradually after July.

On the other hand, tube demand for construction machinery, industrial machine and construction remains low. The output reduction by welded tube makers continues for a while.