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Japan's Crude Steel Production in FY2015
= It is forecasted to maintain the same level of over 110 million tons as in FY2014 =
The Japan Iron & Steel Federation released its forecast of crude steel production for the fiscal year of 2015 to maintain the same level of more than 110 million tons as in the previous fiscal year. Although a movement of the overseas market and so on is a key variable factor for its crude steel production in the fiscal year of 2015, a bottoming out of housing investments and strong demand related to capital investments will provide underpinning for its production to offset a fall in demand for civil engineering with a recoil reduction of the public works budget.

In the fiscal year of 2014, demand for housing and related to automobiles fell below that of the previous year caused by an increase in the consumption tax but in the 1st half year, demand for shipbuilding and industrial machinery as well as for public works remained steady, which underpinned the domestic demand. Although export of steel products decreased in the 1st half year due to easing of supply and demand in the Asian steel market but the export was on track to recovery in the 2nd half year. As a result, its production of crude steel is expected to exceed 110 million tons for 2 years in a row in the fiscal year of 2014.

The domestic demand for steel products in the fiscal 2015 is seen to remain steady because housing investments head in the direction of bottoming out and demand for non-housing buildings having dropped due to the effect of an increase in the consumption tax and capital investments like machinery remain steady despite of a drop in a pushing up effect by the public works budget increase. Overall, the domestic demand is expected to maintain the level of the fiscal 2014.

The overseas market is affected by the large ramp-up of the steel production capacity of China and Korea following the previous year. For this reason, in the 1st half year, export fell while import remained at the high level. In fiscal 2015, according to the worldsteel, the worldwide demand for steel is forecasted to increase even slightly. However, as easing of a balance of supply and demand is expected to continue, Japan's steel export is seen to remain at the level of the previous year while its import will maintain the high level.
last modified : Mon 22 Dec, 2014 [10:38]
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