Automotive Steel Supply to Tighten along Aggressive Car Output in 2H

Japanese automakers plan aggressive car output increase in the second half of fiscal 2011 (October 2011-March 2012). Japanese automakers’ output plans currently total more than 5.6 million completed cars and more than 4.5 million knockdown sets for the six months. Japanese export of automotive steel products is expected to hit record high in the second half of fiscal 2011 when Japanese car makers are actively increasing overseas productions. Thus automotive steel supply is likely to tighten mainly for galvanized steel and special steels.

Japanese car makers’ output plans total more than 2.7 million completed cars and more than 2.4 million knockdown sets for October-December 2011 as of early August. For January-March 2012, the productions are expected to total more than 2.8 million completed cars and more than 2.5 million knockdown sets. The recent peak was approximately 6.3 million completed cars and 4.2-4.3 million knockdown sets in the second half of fiscal 2007.

An official of Japanese integrated steel maker said Japanese automotive steel shipment is expected to exceed the volume in the second half of fiscal 2007 since export of automotive steel products has currently renewed the yearly record every year.

For April-June 2011, Japanese domestic production was 1.52 million completed cars and 1.47 million knockdown sets. The production is estimated at above 2.3 million completed cars and knockdown sets for July-September.