Japanese Steel Industry Must Consider Sub Prime Loan Issue

Chairman Hajime Bada of Japan Iron and Steel Federation said at monthly press conference on Wednesday the influence of Sub Prime Loan issue in USA is seriousness unexpectedly, the issue is making impulse to American economy and world economic growth may slow down a little. Mr. Bada said Japanese company’s profit is getting worth due to higher yen and Japanese steel industry must consider a risk including exporting business when the consumption in USA is decreasing. Mr. Bada said world steel demand is expected to increase by 6% in 2008 from 2007, and the demand may decrease due to Sub Prime Loan issue while the issue isn’t making influence to the demand at the current moment. Mr. Bada said Japanese crude steel renewed highest in 2007 for the first time of 34 years, the crude steel is likely to achieve to highest in fiscal 2007 at the ended of March 2008. Mr. Bada analyzed it’s a matter of the production capacity not the demand that the crude steel was highest, Japanese demand outreaches the capacity. Mr. Bada said it is difficult that the steel makers would construct integrated steelworks in Japan due to decreased domestic demand by the low birthrate or the issue of the carbon gas reduction.