Japanese demand of hot rolled special steel products will decrease by 50% to 938,500 tonnes in monthly average in April-June from same period of 2008, which is decreases for 3 quarters in a row, according to Ministry of Economy, Trade and Industry. The demand increases by 6% from January-March, which is first increase in 5 quarters, due to slightly higher demand for automobile. However, METI warns the steel makers should be cautious for potential oversupply by keeping low level production under uncertain demand condition at home and abroad.
METI expects special steel industry would keep major production cut when industrial and construction machinery makers take more months for inventory adjustment while automobile industry steps forward for inventory adjustment. METI warns the steel makers should reduce the production level when special steel inventory was 129.9% of the demand at end of January, which was higher than 98.7% at end December. METI expects the monthly demand increases by 9.7% to 670,900 tonnes for domestic market in April-June from January-March, which increases for the first time in 5 quarters. METI expects the export demand decreases by 2.3% to 267,600 tonnes, which decreases for 3 quarters in a row. METI expects domestic automobile output is 1.7 million units for finished car and 1.35 million units for knockdown sets in April-June, which is 8.5% and 31.1% higher from January-March but 40.9% and 37.5% lower than same period of 2008. The total automobile output is 3.05 million units, which is 17.5% higher than January-March and 39.5% lower than same period of 2008.Japan Steel Scrap Composite Prices (Sangyo Press)
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