Japan Steel Industry Seeks Additional Stimulus Package

Japan Iron and Steel Federation’s chairman Shoji Muneoka and officials met with minister Masayuki Naoshima of Economy, Trade and Industry on Wednesday to discuss current status and issues of steel industry. The president of Nippon Steel required the government should prepare additional stimulus package to avoid double dip recession. The industry showed opposition to new environmental tax due to the damage on international competitiveness of the industry while the industry also warned the government should be cautious on emission trade system when the system could increase worldwide emission and could reduce national wealth.

Mr. Muneoka said Japanese steel industry faces Chinese over capacity issue, raw materials supply issue and international steel trade issues. He said the government should support economy recovery when the domestic demand is very slow especially for private capital expenditure and housing.

Mr. Muneoka said Japanese steel industry already realized world top class energy efficiency and the industry cannot realize major emission cut even with new environmental tax and emission trade system. He also said the industry could pay more than 40 billion yen for environmental tax, which impacts on the industry’s competitiveness.

Mr. Naoshima said the government should discuss with industry and people for new environmental tax. He said the government should continue the effort to get international agreement with participation of major countries and fairness for post Kyoto Protocol framework.