Japan Raw Steel Output to Rise by 20.8% in July-September from April-June

Japanese raw steel output will increase by 20.8% to 23.073 million tonnes in July-September from April-June while the output is 24.2% lower than same period of 2008, announced by Ministry of Economy, Trade and Industry on Thursday. The production reaches 20 million tonnes for the first time in 3 quarters. The production is 6% higher than the demand at 21.77 million tonnes estimated by METI.

METI warns steel market is uncertain when European and US market is still slow while the domestic market is still slow for construction applications. METI expects domestic steel makers should be cautious on the supply balance.

The quarterly production is the forth low as July-September in the history since fiscal 1968. The production is 42.169 million tonnes in April-September, which is 31.5% lower than same period of 2008 and represents the lowest level since first half of fiscal 1971.

The demand will increase for sheet steel after inventory adjustment in automobile and appliances industries while the plate demand decreases for construction and industrial machinery and shipbuilding. The demand for construction is still weak under slow investment by private sector.

The steel export will increase for China, India and other Asian countries due to stimulus package. The carbon steel production for export increases by 34.9% to 5.874 million tonnes in July-September from April-June while the production is 3.9% lower than same period of 2008.