Kyoei Steel’s Production of Reinforcing bar and Flat Steel to be Still No. 1

The production of reinforcing steel bar and flat steel in the first half of fiscal 2005 was 5.59 million tonnes, down 4.6% from the same period last year. Kyoei Steel and Daiwa Steel decreased the production to 610,000 tonnes and 420,000 tonnes respectively and reduced the production share since they reinforced the production decrease due to decline of the demand in the Kansai area, Western Japan, in June-August 2005. Nonetheless, Kyoei and Daiwa maintained No. 1 and 2 manufacturers of the products. Further, the makers in the Kanto area around Tokyo, Eastern Japan, increased the production share relatively because the demand for construction in Tokyo metropolitan district was firm. The makers in the Kansai area tend to increase the production according to the increasing demand due to the strong demand of construction of condominiums and office buildings from last fall while the makers in the Kanto area prepare for the production decreases toward the inventory adjustment from last November. So the market share is likely to change a little in the second half of fiscal 2005.