Japan Carbon Steel Demand to Reach 65 million tonnes in F2006

Japanese steel industry expects the domestic carbon steel demand will increase by around 1 million tonnes to 65 million tonnes for fiscal 2006 ending March 2007 from fiscal 2005 when the demand increases for high valued steel products from manufacturers including automobile, shipbuilding and industrial and construction machinery industries. Appliances makers and other manufactures build new plant in domestic sites and building demand increases while the civil working demand keeps decreasing. Domestic carbon steel demand decreased to less than 60 million tonnes in fiscal 2001 and 2002 after the demand hit 81.5 million tonnes in fiscal 1990 under bubble economy with higher demand for building and civil working. The demand increased to 64 million tonnes in fiscal 2005 after the demand recovered 60 million tonnes in fiscal 2003 and increased to 62.4 million tonnes in fiscal 2004. The demand increases when domestic automakers expand the output under firm economy growth worldwide and activity of shipbuilders and construction machinery increases under rapid growth for energy and resources. Japanese finished car output is expected to reach 11.3 million units in fiscal 2006 after the demand expanded to 10.89 million units in fiscal 2005 from 10 million units in fiscal 2001. Japanese vehicle knockdown sets output is expected to increase to 8 million units in fiscal 2006 after the output increased to 7.6 million units in fiscal 2005 from 5 million units in fiscal 2000. Japanese shipbuilding is expected to increase to around 17 million gross ton in fiscal 2006 after the activity increased to 16 million tonnes of gross tonnes from 10 million tonnes in fiscal 2000. Some steel industry interests expect the nonresidential building start increases to 74 million square meters in fiscal 2006 after that increased to 70 million square meters in fiscal 2004 from the bottom of 60 million square meters in 2002. Japanese steel industry now expects the raw steel output will increases to 115 million tonnes in fiscal 2006 from 112.3 million tonnes in fiscal 2005 when the output in the first half to September increased to 58 million tonnes though the industry expected the output will be 112 million tonnes for fiscal 2006.