Thai Flood to Impact on Japan Flat Rolled Steel Market

Japanese car output is slowing down due to the impact of flood in Thailand. Due to the parts supply disruption in Thailand, Japan’s largest car maker, Toyota Motor reduces the operation rate at main plants in Japan since October 24. The carmaker adjusts the operation rate depending on lines this week. Industry sources including parts maker see Toyota Motor would reduce the output by around 100,000 units for November compared with original plan. Honda Motor also reduces the Japanese production this week. Nissan Motor also indicates the production could decrease by around 20,000 units in Japan.

Japanese hot, cold and coated flat steel inventory held by the makers, dealers and members of national association of steel coil centers was high at around 4.38 million tonnes at the end of September. Japanese flat rolled steel supply could get loose more if Japanese major steel makers’ shipment would slow for automakers due to automakers’ production cut.