Japan Steel Consumption to Reach 77 million tonnes in FY2006

Nippon Steel Corporation forecasts that the domestic consumption of carbon and special steel will increase by 760,000 tonnes to around 76.86 million tonnes in fiscal 2005 ending March 2006 from fiscal 2004. The demand increases due to higher consumption of carbon steel and special steel by domestic manufactures though the construction application uses less steel due to smaller budget by public sector. The firm expects the steel consumption reaches 77 million tonnes in fiscal 2006 when manufactures lifts the consumption. The domestic consumption will increase for 4 consecutive years.Nippon Steel expects the domestic carbon steel consumption will increase by 360,000 tonnes in fiscal 2005 from fiscal 2004 when manufactures increased the consumption by 750,000 tonnes while construction industry decrease the use by 360,000 tonnes. The firm said the special steel consumption will increase by 370,000 tonnes.The firm expects new housing start will increase to 1.23 million units in fiscal 2005 from 1.19 million units in fiscal 2004. The firm said the non-residential construction starts will keep the high-level at 70.39 million square meters compared with 70.70 million square meters in fiscal 2004.The firm expects new shipbuilding grows to 16 million gross tons in fiscal 2005 from 14.22 gross tons. The firm said the finished car output will increase to 10.70 million units from 10.62 million units and the knockdown sets output will increase to 7.98 million units from 7.46 million units. The firm expects industrial machinery output will also increase.