Japanese steel demand will increase by 3.1% to 27.51 million tonnes in July-September from same period of 2007, announced by Ministry of Economy, Trade and Industry on Monday. METI expects the demand will increase by 3.1% from April-June due to firm demand for shipbuilding and industrial and construction machinery. METI estimates the crude steel output to meet the steel shipment will increase by 2.2% to 30.56 million tonnes, which is record high as the quarter topping 30.24 million tonnes in 1973, while the output is 1.7% lower than April-June, which is first drop in 2 quarters. The raw steel output keeps more than 30 million tonnes for 4 quarters through July-September. The output increases for 11 quarters in a row year to year basis.METI expects the carbon steel demand will increase by 2.1% to 21.91 million tonnes in July-September from same period of 2007, of which the domestic demand increases by 1.9% to 15.98 million tonnes. METI expects the special steel demand increases by 7.4% to 5.6 million tonnes, of which domestic demand increases by 2.1% to 3.92 million tonnes. METI expects the steel demand will improve even for domestic civil works and building for July-September form recent bottom. METI expects the export will increase when electric furnace steel makers shift to offshore market. METI estimates the demand is firm but warns potential downturn when the building demand is still slow and sheet steel inventory increased at end of May. METI expects the carbon steel inventory held by makers and distributors decreases by 150,000 tonnes at end September from 6.27 million tonnes at end June, which was 0.88% of shipment.
Japan Steel Scrap Composite Prices (Sangyo Press)
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