Special Steel Demand to Increase 1.6 Million Tonnes in July-September
Ministry of Economy, Trade and Industry announced the estimates of special steel demand in July-September 2004. According to the estimates, the monthly average demand of hot rolled special steel increases to 1.609 million tonnes including export in the period, up by 1.9% from April-June and up by 3.4% from the same period of last year. The domestic demand will increase for automobile, industrial machinery and non-residential construction. The export will also increase for China and Southeast Asia. Following the brisk demand, the Ministry estimated the production increase with limited additional capacity.

If the estimate went well, the demand increase for the first time in 3 quarters in quarter-to-quarter. The demand also represents increases for 10 consecutive quarter in year-to-year.

Regarding the main demand of automobile production, the Ministry expects that there will be the introduction of new models of standard-sized cars after early fall and the export will increase to Southeast Asia and Europe. So it estimated finished cars output increase by 2% to 2.58 million units in July-September from April-June and, knock-down set increases by 0.6% to 1.76 million units. Total car output increases by 1.4% to 4.34 million units.

In the breakdown of special steel demand, the domestic demand increases to 1.107 million tonnes in the quarter, up by 0.5% from previous quarter and by 1.8% from same period of last year. The export increases to 501,600 tonnes, up 5% and 7.3%. The domestic demand would increase for the first time in 3 quarters in quarter-to-quarter and increases for 9 consecutive quarters in year-to-year. The export volume increases for the first time in 3 quarters both in quarter-to-quarter and year-to-year.
Domestic demand increases for 7 special steel products except for stainless compared in the quarter with previous quarter. Export increases for 8 products.