World Steel Demand to Keep High Level, Mr. Bada

Chairman Hajime Bada of Japan Iron and Steel Federation said at speech of the new year party on Monday world steel demand will keep high level under firm economy growth worldwide and high rate growth for East Asian and BRICs countries. Mr. Bada, who is president of JFE Steel, also said Japanese steel industry should overcome worldwide surge for mineral price and environmental issue. Mr. Bada said the cost increase of raw materials for steel making is much larger than cost cutting effort in the industry. He indicated the steel industry would pass the higher cost on the steel selling prices. He also said Japanese steel industry will seek support by competitive authority to keep international fair competitive condition when BHP Billiton tries to acquire Rio Tinto, which could strengthen raw material suppliers’ bargaining power. Mr. Bada said Japanese steel industry should reduce carbon dioxide emission through technological approach while the industry tries to improve energy efficiency in general by providing better steel products for automobile, shipbuilding and other users. He said the federation will join international discussion to reduce CO2 emission by encouraging sectoral approach and by discouraging Cap & Trade system. Mr. Bada said the federation keeps seeking better solution for clearing process for building starts when Japanese building activity is very slow with confusion for new building standard law. Mr. Bada warns Japanese steel industry should keep watching Chinese steel industry in production and export while Chinese government’s effort reduced the steel export in second half of 2007.