Japan Special Steel Demand to Rise by 6.5% in July-September

Japanese special steel demand will increase by 6.5% to averaged 1.76 million tonnes per month for hot rolled products in July-September from same period of 2005, according to Ministry of Economy, Trade and Industry. The demand is 2.9% higher than April-June. The demand increases for the first time in 2 quarters both from same period of 2005 and from April-June. The domestic demand of tool steel and stainless flat steel will increase for industrial machinery and electric machinery along with seasonal increase for construction in July-September from April-June while the automotive demand decreases. The export will increase for high tensile steel and structural special steel. The export will increase by 45.6% for high tensile steel and by 48.4% for stainless flat steel from same period of 2005. The automobile output decreases by 0.2% to 2.67 million units for finished vehicle and by 1.5% to 1.97 million units for knockdown sets in July-September from April-June. The total output decreases by 0.7% to 4.63 million tonnes. The output increases by 3.3% for finished vehicle and by 2.2% for knockdown sets totaling 2.8% increase from same period of 2005. The output is expected to increase by 4.1% to 8 million units in fiscal 2006 ending March 2007 from fiscal 2005 while the finished vehicle output is flat at 10.9 million units. The domestic special steel demand will increase for reported 5 items including tool steel, mechanical structural steel and spring steel in July-September from April-June. The export will increase for 6 items including tool steel, mechanical structural steel and structural alloy steel. The stainless flat steel export will increase under better supply balance from same period of 2005.