Japan Raw Steel Output to Decrease in Oct-Dec, Mr. Hayashida

Japan Iron and Steel Federation’s chairman Eiji Hayashida said at the monthly press conference on Thursday Japanese raw steel output could decrease several percent in October-December compared with April-September level. He said steel demand slows in Asia while the domestic demand decreases for automobile due to finished subsidiary for eco-friendly vehicle and the demand recovers for shipbuilding and construction machinery slightly. He said the market would regain recovery stage based on potential demand in January-March.

Mr. Hayashida also said as president of JFE Steel the firm tries to keep the current steel selling price in and after October. He said the firm increased the selling price widely in April-September to cover higher raw materials cost while the firm reduced the own cost aggressively. He said the price hike was not enough to cover the higher cost and the firm cannot reduce the price even with lower raw materials cost in October-December from July-September.

Mr. Hayashida said as chairman of JISF Asian steel market price would rebound when Chinese steel production decreases as demand slowdown and the steel export decreases while Chinese overproduction cased adjustment of Asian steel market.

Mr. Hayashida appreciated exchange intervention of Japanese government and Bank of Japan to adjust too high yen rate on Wednesday, which was first attempt in 6 and half years, when they acted just after ruling Democratic Party of Japan’s top election while some watchers blamed the action was too late. He said the government should keep moving speedy to improve the economy when uncertainty increases.

Mr. Hayashida showed positive view on the administration’s continuity when the Prime Minister won the election. He said the government should realize the new growth strategy in order to put the economy on a recovery path.