Tough Circumstances to Continue for Japanese Steel Industry in 2012, Mr. Uchida

Nippon Steel’s vice president Kozo Uchida attended a press meeting in Tokyo on Tuesday and showed a strong concern on the increase of imported steel products and the impact on domestic market price. Mr. Uchida indicated export decrease and import increase would continue for a while under extremely strong yen rate.

Mr. Uchida concluded CY2011 was a very tough year for Japanese steel industry due to the Great East Japan Earthquake, world economic confusion, historically strong yen trend and flood in Thailand. He pointed out world steel demand leveled off while Chinese and South Korean steel makers aggressively expanded output capacities and then steel market price trend was totally weak.

Mr. Uchida gave a view that Japanese crude steel production is likely to decrease in CY2012 mainly due to the partial demand deterioration after the Japan Earthquake. He explained Japanese steel makers lost price competitiveness under high yen rate while Japanese carbon steel import increased to 480,000 tonnes in October from the usual volume of 300,000 tonnes.

Mr. Uchida emphasized Japanese steel makers should cautiously downsize domestic steel sheet inventory and watch export and import market. As for China, he analyzed the steel demand could increase as in usual years after Chinese New Year but the increasing size and speed are unforeseeable.