Japanese Special Steel Makers Maintain High Level Order Acceptance

Japanese special steel makers maintain high level order acceptances despite of low automobile productions. Automobile parts makers seem to increase purchase of special steels when they expect automobile output recovery in the last half of fiscal 2011 (April-September 2011). Meanwhile, the order volume might decrease gradually along car makers’ low operations in the first half of fiscal 2011. Special steel makers are cautiously watching actual demand condition.

Hitachi Metals said the firm’s order receipts didn’t decrease from automotive component makers since some users increase inventory of special steel products preparing for the demand recovery in near future. Daido Steel’s order receipts also maintain high level and there is no sing that the users decrease orders. Nippon Koshuha Steel said the orders are decreasing for forging steels while increasing for tool steels. The users seem increasing speculative orders before the price hike. Construction machine and industrial machine makers are also increasing orders for restoration from earthquake disaster.

Sumikin Bussan, a major steel dealer, analyzes the users’ order kept high level until March but may decrease soon. Daido Steel and Sanyo Special Steel eye output reduction in near future. Special steel makers and large dealers are cautiously watching actual demand level.

The demand forecast for hot rolled special steel products was 5.13 million tonnes for January-March 2011, according to Ministry of Economy, Trade and Industry. Meanwhile, actual special production increased by 2.1% to 5.24 million tonnes against the forecast, that exceeded 90% against the recent peak in January-March 2008. However, special steel output is expected to decelerate when Japanese automobile factories reduce output largely from now and the operations are expected to recover in late December.