Japan Special Steel Demand to Drop 3.8% in January-March

Japanese demand of hot rolled special steel products will be monthly 1.73 million tonnes including export in April-June, which decrease by 3.8% from January-March while increases by 0.4% over than same period of 2006, according to outlook by Ministry of Economy, Trade and Industry. Domestic demand will keep firm. However, 6 items such as SC steel against 8 items decreases for April-June from January-March when automobile output including finished cars and knock down set and industrial machinery output decreases from January-March. At the same time, the export of 4 times decreases from January-March when high-strength steel decreases due to non-demand season for automobile for USA and fluctuation of projects though the inventory advancement of steel for spring and toll steel finished in Asia. The demand will increase in 4 quarters in a row on quarter to quarter base and for 21 quarters in a row on year to year base.The special steel demand will decrease by 2.4% to 1.24 million tonnes for April-June from January-March, representing decreases by 0.5% from a year earlier. The export will decrease by 7.2% to 489,800 tonnes from January-March while increase by 2.8% from a year ago. The special steel output will increase by 3.9% to 21.18 million tonnes for the year to March 2007 from previous year, representing renewal record for 5 years in a row. The output keeps high level thanks to higher automobile production.The ministry expects the domestic finished automobile output will decrease to 2.7 million units in April-June, which decrease by 10.1% from January-March and 1.4% than same period of 2006. The knockdown sets output will increase to 1.93 million units, which are 0.9% higher than January-March and 1.6% higher than same period of 2006. The output will decrease by 5.8% to 11.6 million units for finished car for the year to March 2007.