Steel Demand Rises by 8.5% in Major Countries, JISF

Apparent steel consumption in 23 countries and an area will increase by 8.5% to 1.138 billion tonnes in 2007 from 2006, announced by Japan Iron and Steel Federation on Tuesday. The raw steel output will increase by 7.4% to 1.142 billion tonnes. Chinese apparent steel consumption will increase by 17.9% to 521 million tonnes while the raw steel output increases by 17.1% to 492 million tonnes. The federation expects world steel output and trade keeps growing under worldwide economy growth despite of inventory adjustment in Europe and USA.The federation expects Chinese steel demand will keep growing in 2007 due to high level activity of manufacturers despite of investment slowdown policy. The report said the steel export including semi-finished steel will decrease by 1.6% to 49.6 million tonnes in 2007 from 2006 due to slower export policy and potential risk for trade disputes though the output increases as 2006. The report said the import increases by 1.1% to 19.2 million tonnes mainly for high valued steel items. The federation expects Brazilian raw steel output will increase by 16.4% to 36.1 million tonnes in 2007 from 2006 after decrease in 2006. Indian steel output will increase by 5.0% to 44.2 million tonnes. The output will decrease by 1.9% to 194.2 million tonnes for European Union 25 and by 3.6% to 95.3 million tonnes in USA due to output reduction in first half year to reduce overstock. The federation expects steel export including semi-finished steel by 23 countries and an area will increase by 1.7% to 243.3 million tonnes in 2007 from 2006 while the import increases by 1.5% to 233.7 million tonnes. The report said the trade growth will slowdown due to overstock burden in Europe and USA. The export market committee of the federation collected data through branches of trading firm members in November-December 2006. The committee analyzed the data based on foreign exchange rate, interests and crude oil price as of November expecting worldwide economy growth will enter into 4th year in 2007.