Japan Steel Demand to Rise by 1.65Mt in F2006, Nippon Steel

Nippon Steel expects Japanese domestic steel consumption will increase by 1.65 million tonnes to 79.3 million tonnes in fiscal 2006 ending March 2007 from fiscal 2005 with expectation the demand increases by around 50,000 tonnes to 19.75 million tonnes in January-March from same period of 2006. The domestic demand will increase for 4 years in a row since fiscal 2003. The firm estimates the domestic steel consumption will decrease by 650,000 tonnes in January-March from October-December due to seasonal slow demand for construction. The carbon steel domestic demand for construction will be 6.7 million tonnes in January-March, which is 600,000 tonnes lower than October-December and 50,000 tonnes lower than same period of 2006 under lower activity for civil works despite of firm demand for residential and nonresidential building. The firm expects the carbon steel demand for manufacturers will be 9.35 million tonnes, which is 100,000 tonnes higher both from October-December and same period of 2006, when automobile output keeps high level reaching 3 million units for finished car and 2 million units for knockdown sets and the activity is firm for industrial machinery, shipbuilding and appliances. The firm expects the special steel domestic demand is 3.7 million tonnes in January-March, which is 100,000 tonnes lower than October-December and is flat as same period of 2006, due to longer lead time to consume despite of firm activity by manufacturers. The firm estimates the domestic carbon steel consumption will increase by 1.05 million tonnes with 1.15 million tonnes increase for manufacturers and 100,000 tonnes decrease for construction in fiscal 2006 from fiscal 2005. The firm expects the domestic steel demand will increase by 1.65 million tonnes including 600,000 tonnes increase for special steel demand.