Japan Crude Steel Output to Reach 117.5MT in F2006

Japan Iron & Steel Federation announced on Thursday that Japanese crude steel output is expected to increase by 4.8 million tonnes to 117.5 million tonnes in fiscal 2006 ending March 2007 from the previous year, and by about 2 million tonnes to 115.5 million tonnes in fiscal 2007 from fiscal 2006. The output volume in fiscal 2006 would be secondly highest after 120 million tonnes in fiscal 1973. The federation forecasts the production would become thirdly highest in fiscal 2007 due to the increase of domestic demand and the decrease of export for crude steel. Japanese crude steel output would keep over 110 million tonnes for 5 consecutive years from fiscal 2003. Domestic common steel demand is expected to exceed from fiscal 2005 due to the increase of demand for private civil engineering, housing and plant and the strong demand for automobile, shipbuilding, industrial machinery and electric machinery while the demand show no sign of touching bottom for public works. The demand for special steel products is expected to achieve highest in 2006. All steel products export keeps increasing in fiscal 2006 from fiscal 2005 because the demand for Japanese high grade steel is expanding with stable steel market price. Because Japanese steel makers are responding by their increased production for strong steel demand, crude steel in fiscal 2006 is expected to increase by 4.8 million tonnes from fiscal 2005. Common steel products demand is expected to keep or slightly decrease in fiscal 2007 from fiscal 2006 because the demand for manufacturing industry would continue expansion trend while the demand for construction would decrease. The federation forecasts the demand for special steel products would keep high level because Japanese users’ needs for high grade products would be strong while the import would decrease when the export would decrease and the import would rise by the influence of the increased export from China.