Japan Special Steel Bar, Wire Rod Output to Hits Record in F2007

Japanese production of special steel bar and wire rod is expected to exceed 11 million tonnes for fiscal 2007 ending March 2008 topping record 10.78 million tonnes in fiscal 2006. The output increases for 6 years in a row due to strong demand for automobile and construction machinery. Integrated steel makers expect the demand increases for fiscal 2008. The output increased by 40% to 10.78 million tonnes in fiscal 2006, which was around 40% higher than recent bottom of fiscal 2001. The main driver of automobile output reached 11.5 million units for finished car in fiscal 2006, which was much higher than 9.8 million units in fiscal 2001. The construction machinery shipment also exceeded 2 trillion yen for fiscal 2006, which was more than double of fiscal 2001. The automobile output is expected to reach 11.7 million units in fiscal 2007 while construction machinery makers increase the output mainly for export. The special steel bar and wire rod output increased by 3.6% to 5.48 million tonnes in April-September 2007 from same period of 2006. The special steel bar and wire rod demand is expected to increase more in fiscal 2008 from fiscal 2007 when the automobile output is expected to increase mainly for knockdown sets and construction machinery makers plan higher output.