Japan Special Steel Bar and Wire Rod Demand Expands by 3-4% in F2008

Japanese special steel bar and wire rod demand is expected to increase in fiscal 2008 at the ended of March 2009 from 2008 thanks to the expansion of automobile and construction machinery output. Automobile makers will increase the output of completed car and knock down set for export. Construction machinery makers plan to increase the output for export. Japanese integrated steel maker source said the demand would increase by 3-4% in fiscal 2008 from 2007.Special steel bar and wire rod is used bolt, nut, cable and component of engine. The supply accounts for 50-60% to automobile, which about 20% to construction machinery.Japanese completed car output is expected to increase to over 11.8 million cars in fiscal 2008 from fiscal 2007 of 11.79 million cars. Japanese knock down set output is expected to increase to over 9 million sets in fiscal 2008 from fiscal 2007 of 8.5 million sets. Japanese integrated steel maker source said other components export is increasing with the expansion of overseas output by Japanese automobile makers. Japanese integrated steel makers are increasing special steel bar and wire rod export to overseas secondary processing makers which are established by Japanese integrated steel makers.Construction machinery export keeps higher level for resources or developing country.Japanese special steel bar and wire rod output increased to 11.367 million tonnes by 5.5% in fiscal 2007 from last year. The output keeps upward trend after fiscal 2002, which expanded by 1.65 times compared with the bottom in fiscal 1998.