The Japanese crude steel industry continues to grow as demand for crude steel increases from all quarters including automobile and construction industries as well as exports to other Asian countries.
The Japan Iron and Steel Federation revealed that 3.4% rise occurred in crude steel output of Japan in 2007 as compared to 2006. The total production last year was 120.19 Million Tons, highest since 1973, as reported by news.xinhuanet.
Specialty steel, used to manufacture vehicles and machinery parts, saw a rise of 2.4% in production to 26.14 Million Tons while the output of regular steel rose 3.7% to 94.05 Million Tons. The production target set up by the federation for 2008 is 118 Million Tons with YOY increase of 250,000 Tons.
The major reason for increase in the crude steel production in Japan is rising domestic demand for high-end sheet products used in ships and home electrical appliances. Consequently, steel producers have significantly increased the output to meet the escalating demand.
Besides, the automobile industry of Japan is also playing a vital role in pushing up the output of crude steel in the country. The year 2007 witnessed a hike in the production of automobiles, and correspondingly, an increased demand of steel. Thus, the output of the crude steel industry experienced an upsurge in Japan in 2007.
Another crucial factor leading to the increased output of crude steel in Japan is the growth in construction industry. Construction industry is growing rapidly in the country as home and condominium are being built to meet the shelter needs of people and subsequently, builders need steel to complete their projects. Therefore, the demand for steel has increased in the country.
Further, Japan’s crude steel production is surging due to growing orders from other countries. Asian countries are developing and creating more orders for the crude steel industry in Japan.
According to a Research Analyst at RNCOS, “The steel industry will grow in the current year due to the healthy demand from the automobile industry in the country. Japan’s steel producers are compelled to push up production capacity of steel in future in order to keep up with the increasing demand for steel in Japan. In terms of exports to other Asian countries, there is a need to increase the output to meet the growing demand.”
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