Japan Raw Steel Output to Rise by 2.3% for Jul-Sep, METI

Japanese raw steel output is estimated to increase by 2.3% or 697,000 tonnes to 30.604 million tonnes for July-September compared with the same period of the previous year, announced Ministry of Economy, Trade and Industry on Wednesday. The output will hit the record as a second quarter since fiscal 1973. The output is higher by 0.1% or 44,000 tonnes than METI’s demand estimation at 30.56 million tonnes. The output will exceed 30 million tonnes for 4 consecutive quarters when the demand keeps high level mainly from automobile and shipbuilding. Compared with the previous quarter (April-June), the output will decrease by 1.5% or 457,000 tonnes. Raw steel output of integrated steel makers will increase by approximately 300,000 tonnes in July-September from April-June, while the output of electric furnace steel makers will decrease by about 680,000 tonnes and that of special steel makers will decrease by about 70,000 tonnes. The output could reach 61.66 million tonnes for the first half of fiscal 2008, exceeding 60 million tonnes for the first time. The output growth is even faster than fiscal 2007 when the output hit the annual record.Meanwhile, METI reported rebar output will decrease by 6% in July-September from the same period of last year due to slow demand from building construction. METI pointed out makers should pay attention to the demand conditions after third quarter with indications that Japanese steel sheet inventory increased to 4.09 million tonnes at the end of June, that dealers’ shipment is slow or that Japanese export value decreased in June.