Japan Steel Top Exec Warns Potential Slower Demand

Shoji Muneoka, chairman of Japan Iron and Steel Federation said at monthly press conference on Friday worldwide financial uncertainty could impact on Japanese steel market. The president of Nippon Steel also said Japanese steel industry is still studying if it joins Japanese government leading trial for warming gas emission trading system starting October. Mr. Muneoka showed concern financial uncertainty could impact on Japanese consumer spending and private sector’s capital expenditure. He said such impact could reduce Japanese steel demand while the demand is still generally firm. Mr. Muneoka said the steel industry tries to check the emission trading system offered by Japanese government and will decide the industry’s attitude. He emphasized the industry still tries to clear voluntary target to reduce carbon dioxide emission and still tries to find if the emission trading could contribute to emission reduction, not money game trading. Mr. Muneoka expects Chinese economy would keep annual 8-9% growth even after Beijing Olympic game while the economy slows down from former 11-12% growth when China tries to shift from high growth to stable growth.