In July-September, JFE Steel reduces production for distributors to
reduce inventory. JFE Steel, however, expects contract direct sales are
steady, and the firm increases export of linepipe and plate while it
reduces exports of hot rolled, cold rolled and coated steel sheets to
Asia by 15%. In addition, the company is building stockpile for planed
relining of blast furnace at Kurashiki of West Japan Works till the end
of August, and production will decrease because of outage in September.
As a result of it, JFE Steel's production in July-September will be in
line with April-June of 6.7 million tonnes.

JFE Steel will try to raise price because domestic prices are not
enough, including contract prices for direct sales to big customers,
who accepted the raise last year.

The company will try to raise by $50-100 from original goal of $300 for
hot rolled, $400 for cold rolled and $500 for coated.

Executive director Hino of the maker prospects that steel industry will
be good because domestic demand will be steady, and international
market will be also steady by China and Russia though Korean demand is
clouded, citing some expectation of short supply like Oil Shock in 1973.
He thinks that market will not get into a state as long as each steel
makers share common perceptions about supply and demand.