Japan Special Steel Demand to Rises 4.6% in January-March

Japanese demand of hot rolled special steel products will be monthly 1.81 million tonnes including export in January-March, which is 3% higher than October-December and 4.6% higher than same period of 2006, according to outlook by Ministry of Economy, Trade and Industry. The demand increases for 3 quarters in a row on quarter to quarter base and for 20 quarters in a row on year to year base. The special steel output will increase by 3.6% to 21.11 million tonnes for the year to March 2007 from previous year, representing renewal record for 5 years in a row. METI expects higher demand in January-March when manufacturers increase the output of automobile, industrial machinery and electrical machinery toward the fiscal year end. METI also expects higher export demand under strong activity for energy development and automobile production in North America. The ministry expects the domestic finished automobile output will increase to 3 million units in January-March, which is 1% higher than October-December and than same period of 2006. The knockdown sets output will increase to 1.91 million units, which is 3.8% higher than October-December and 4.4% higher than same period of 2006. The output will increase by 5.6% to 11.5 million units for finished car for the year to March 2007 while the knockdown sets output decreases by 0.1% to 7.7 million units.