Demand of Steel Tire Cord Increases in Japan, 2005

Domestic demand for steel tire cord continues to increase in Japan when shipment of automotive tire maintains firm both for domestic users and export. Steel tire cord is used as a material for steel radial tires. Monthly consumption of steel code for auto tire increased in Japan for 24 straight months by November 2005 from the same month of the previous year, according to the Japan Automobile Tyre Manufacturers Association (JATMA). Total consumption in 2005 was also likely to exceed the record of the previous year, increasing for 4 consecutive years.Domestic consumption of steel cord was 108,400 tonnes for auto tires in 1985, according to JATMA. It has increased steadily with the increase of tire production in Japan and the growth of steel radial tire’s ratio. The consumption reached 200,000 tonnes in 1997 and was likely to become around 260,000 tonnes in 2005. Steel cord demand expanded to 2.5 times of that in 1985 during these 20 years in Japan.However, domestic demand of auto tire would maintain flat hereafter in Japan, when JATMA estimates the annual demand would decrease by 0.1% in 2006 from the previous year. Export growth of auto tire might also experience downturn, when Japanese tire makers shift their production to overseas, especially to China where auto tire demand increases rapidly. Steel cord production is also shifting overseas. Domestic demand and production of steel cord would grow slower after 2006 than before.