World Steel Industry Keeps Firm against Subprime Lending Problem

Chairman Hajime Bada of Japan Iron and Steel Federation said at monthly press conference on Wednesday Subprime Lending problem in USA has risk that the influence isn’t clear in the future, but the chairman thinks to can get through with the cooperation of Japan, USA and Europe. The chairman said world economic would keep the growing trend and world steel industry keeps firm tone, too. Mr. Bada said there is concern that increasing Chinese steel export makes influence to world supply and demand. Mr. Bada pointed out Chinese steel export was 7.16 million tonnes in April, 5.94 million tonnes in July and 5.38 million tonnes in August, which is decreasing. Mr. Bada explained Chinese government’ measure such as reduction of value added tax rebate or the introduction of export tax is under influence to export. Mr. Bada calculates Chinese export influences to world steel industry would reduce if Chinese export would keep down trend. Mr. Bada said world steel industry should put the target of the reduction of heat trapping gases for energy efficiency as the indication with the participation of all world steel players. Japanese steel industry’s plan and International Iron & Steel Institution (IISI)’s plan is about the same. World steel Industry’s approach for the countermeasures against global worming is rebated on the Berlin convention of IISI in October.