Japan Steel Demand to Rise by 31.8% in April-June, METI

Japanese steel demand is estimated at 23.45 million tonnes for April-June, decreasing by 3.1% from January-March while increasing by 31.8% from the same period of 2009, announced by Ministry of Economy, Trade & Industry (METI) on Monday. Crude steel shipment is estimated at 26.17 million tonnes, 1.5% lower than January-March while 37.1% higher than the same period of 2009. Steel export would maintain high level to Asia while domestic steel demand decreases from building construction and manufacturing industry. The demand recovery from domestic manufacturing industry is weakening. Consequently, steel export ratio is reaching 40%.

Crude steel shipment would represent quarter-to-quarter minus for 2 quarters in a row while year-to-year plus for 3 consecutive quarters. The demand for steel products would show the first quarter-to-quarter minus since April-June 2009 while year-to-year increase for 2 quarters in a row.

METI said Japanese steel industry should pay an attention on rapidly increasing export and Asian steel market since overseas demand may slow down and Chinese steel industry has huge overcapacity. METI also pointed out South Korean and Taiwanese steel industries are increasing production capacities.

As to hot rolled special steel products, Japanese demand is estimated at 1.48 million tonnes for April-June, decreasing by 5.6% from January-March while increasing by 69% from a year earlier. Automobile production is forecasted to decrease in April-June from January-March. The demand would represent the first quarter-to-quarter minus since January-March 2009 while year-to-year plus for 2 consecutive quarters.

The demand is estimated at 966,100 tonnes for domestic market in April-June, decreasing by 6.6% from January-March while increasing by 55.5% from the same period of 2009. The demand for export is estimated at 517,200 tonnes, decreasing by 3.6% from January-March while increasing by 101.7% year-to-year.