Japanese Crude Steel Output Estimated to Increase by 0.3% for Jan-Mar

Japanese quarterly crude steel production is estimated to increase by 0.3% to 26.646 million tonnes for January-March 2012 from October-December 2011, according to Ministry of Economy, Trade and Industry. The production would increase for the first time in two quarters when steel export slightly recovers mainly to Thailand and steel shipment increases for domestic automobile makers. On the other hand, the ministry suggested Japanese steel industry should cautiously balance supply and demand of crude steel and steel products since overseas economy is unstable, Japanese steel import clearly shows increasing trend and domestic steel inventory represents high level.

Japanese annual crude steel output is forecasted to decrease by 3.8% to 106.54 million tonnes in fiscal 2011 ending in March 2012 compared with fiscal 2010. The quarterly output represented below 27 million tonnes in and after April-June 2011 after the Great East Japan Earthquake though which had kept above 27 million tonnes for four quarters until January-March 2011. The production was lower by 1.637 million tonnes or by 5.8% for October-December 2011 against the estimated volume. Negative impact of Thai flood was approximately 900,000 tonnes.

Japanese quarterly output of steel products is estimated to increase by 6.6% to 24.071 million tonnes for January-March from the previous quarter. For October-December, steel makers could not adjust crude steel production enough with sharp export decrease. As a result, inventory of intermediate products increased. Steel makers would adjust crude steel output in the 4th quarter.

Among steel products, carbon steel for domestic market would increase by 2.7% to 12.757 million tonnes. Integrated steel makers’ shipment would increase such for automotive steel sheet or sheet pile and shaped steel for civil engineering. Carbon steels for export is estimated to increase by 7.0% to 6.015 million tonnes. Integrated steels’ shipment to Thailand is expected to recover by approximately 100,000 tonnes. Some of steel makers are also expected to increase plate export after the scheduled repair.