Japan Raw Steel Output to Rise by 3.5% in July-September, METI

Japanese raw steel output will increase by 3.5% to 30.094 million tonnes in July-September from same period of 2006, which represents second high after July-September1 1973 as the quarter, announced by Ministry of Economy, Trade and Industry on Monday. The output reaches record 59.98 million tonnes in the first half to September topping former record of 59.87 million tonnes in April-September 1973. The output estimate is 0.9% higher than 29.84 million tonnes of METI’s demand outlook for July-September announced in April. The raw steel output will increase due to strong demand for construction and manufacturers and building inventory of semi-finished steel after unpiling inventory during blast furnace relining and lower yield. The carbon steel output decreases in July-September from April-June to reduce domestic sheet steel inventory while the special steel output will increase. METI said the output level of steel products meets the actual demand while METI warns Japanese steel industry should try to produce at the demand level under potential international trade dispute between China and Europe and USA and lower international market including Chinese stainless flat steel.