JISF Chairman Views Japan Crude Steel Output to Reach 109MT in F2011

Chairman of Japan Iron and Steel Federation and president of JFE Steel, Mr. Eiji Hayashida attended the Federation’s regular press conference on Thursday and gave an outlook that Japanese yearly crude steel production could reach approximately 109 million tonnes in fiscal 2011 ending in March 2012 if the quarterly production keeps the current level. He commented the quarterly production is estimated to reach 27.5 million tonnes for July-September mainly along the demand recovery from car industry. He said car industry is expected to keep steady steel consumption for October-December while the demand may slow down for January-March. Instead steel shipment might increase for reconstruction and redevelopment of disaster areas in North Japan.

As for steel export market, Mr. Hayashida analyzed Asian steel market seems to have hit bottom when raw material prices are surging. At present, Asian steel market price is very weak and basically unforeseeable, he said. Mr. Hayashida added export profitability is seriously worsening for Japanese steel industry when yen exchange rate maintains strong at 76-77 yen per US dollar.

He also referred to Japanese government’s current actions. He committed Japanese steel industry expects for resolve of corporate tax reduction while the enforcement can be suspended during a certain term in order to secure restoration and redevelopment budgets for disaster areas attacked by the Japan Earthquake.

As for Japanese electricity problem after the mega earthquake, Mr. Hayashida requested current situation of unstable power supply should be resolved early since Japanese enterprises are moving their operations to overseas. He said Japanese government should show strong leadership to confirm safety of Japanese atomic power plants, to obtain consent of local residents and to restart the power plants early for stable electricity supply.