Japan Steel Demand to Rise in April-June, Nippon Steel

Japanese steel consumption will increase by 80,000 tonnes to around 19.3 million tonnes in April-June from same period of 2006, according to estimate by Nippon Steel. The carbon and special steel consumption by manufacturers increases by 160,000 tonnes to around 12.75 million tonnes while the carbon steel demand for construction decreases by 80,000 tonnes to around 6.55 million tonnes. The firm expects the domestic demand keeps high level in fiscal 2007 started April as fiscal 2006.The firm expects the carbon steel demand for building will decreases by 50,000 tonnes to around 5.14 million tonnes in April-June from same period of 2006 due to lower housing and building activity. The firm estimates the carbon steel demand for civil works decreases by 30,000 tonnes to around 1.41 million tonnes. The firm expects the carbon steel demand for automobile decreases by 20,000 tonnes to 3.37 million tonnes in April-June from same period of 2006 based on 2.72 million units of finished car and 1.96 million units of knockdown sets output. The firm estimates the shipbuilding steel demand will increase by 90,000 tonnes to 1.46 million tonnes based on 4.5 million gross ton of shipbuilding start. The firm expects the appliances steel demand is flat at 1 million tonnes and the demand for industrial machinery increases by 30,000 tonnes to 1.55 million tonnes. The firm expects the domestic steel consumption is flat in fiscal 2007 compared with 79.3 million tonnes in fiscal 2006 based on 1.25 million units of housing start, 72.36 square meters of nonresidential building start, 11.6 million units of finished car output and 18 million gross ton of shipbuilding start.