High Yen Rate Impacts Japanese Steel Industry, Mr. Uchida

Mr. Kozo Uchida, vice president of Nippon Steel, said at a press meeting in Tokyo on Thursday historically high yen rate is lowering Japanese manufacturing industry’s competitive power. He pointed out Japanese steel import is increasing largely while the export is decreasing. Thus domestic steel sheet inventory seems increasing to the obviously surplus level.

Mr. Uchida viewed domestic steel demand is steady for automobiles and industrial machines while recovering for building materials At overseas, each countries’ central banks are expected to launch countermeasures to prevent Europe’s financial crisis. Mr. Uchida indicated Japanese steel makers should keep cautious output controls along actual demand level and progress inventory adjustment.

As for steel demand in emerging countries, he told central banks in Japan, the U.S.A., Europe and other countries are currently moving to credit ease policies and is shifting their attentions to economic growth rather than inflation control. Steel demand is basically extending in Asia and expected to continue the healthy growth with several-time adjustment phases, he said.

On the other hand, Mr. Uchida emphasized Japanese steel import is largely increasing mainly from South Korea. He alerted Japanese steel makers should watch South Korean steel market cautiously when South Korean steel makers’ production capacity is increasing despite of slow domestic demand.

Mr. Uchida said Japanese steel export is temporarily decreasing due to lower overseas market price, high yen rate and influence of flood in Thailand. But the export volume seems basically high and Japanese steel makers should keep cautious export stances ,he said.