Japanese steel industry increases concern for potential impacts on steel demand from US financial crisis. The interests warn international steel demand could be adjusted while the domestic demand is generally firm except for construction sector. Domestic steel makers prepare for potential output reduction to meet slower demand after a series of output increase phase. Japanese raw steel output increased by 2.2% to 10.18 million tonnes in August from a year earlier, which increased for 27 months in a row and kept over 10 million tonnes for 6 months in a row. The integrated steel makers increased the output by 0.5% to 7.73 million tonnes and the electric furnace steel makers increased the output by 8% to 2.45 million tonnes. The integrated steel makers increased the output for 27 months in a row and the electric furnace special steel makers’ output increased for 11 months in a row under firm demand for manufacturers. The integrated steels report they cannot meet strong orders from manufacturers. However, they could have to reduce the output when the manufacturers including automakers reduce the output. The electric furnace carbon steel makers’ output is still low level at monthly 1.8 million tonnes while the output is higher than a year earlier, when the building demand dropped after new building standard law started in June 2007. The makers are expected to reduce the output for better domestic supply balance when their export slows down for semi-finished products and concrete reinforcing steel bar.
Japan Steel Scrap Composite Prices (Sangyo Press)
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