Japanese mills plan to increase steel production in the third quarter

     The latest survey results show METI, Japanese steel companies are planning to increase steel production in the third quarter, crude steel production target is to reach 26.58 million tons, growth of 2.6%, but still fell 4.7 percent year on year, which is better than the agency in early July this year higher than expected steel demand 1.5% (400,000 tons).

     This shows that the Japanese steel mills for the needs of future growth optimism, but the Japanese industry sources expressed doubts. Japanese steel production can not be completed even if the last quarter inventory adjustment underway, so the person that Japanese steel production in the third quarter and the second quarter will be very or slightly lower. Analysts pointed out that recovery in Japan's domestic steel demand is lower than expected, and weak Asian market supply and demand balance of steel leading to poor export performance, and therefore the need for the Japanese steel mills cut production, so the market return to a more healthy state.
     Japan METI by the survey results show that three quarters of Japanese mills plan to sell to the domestic market, 14.62 million tons of finished steel products, growth of 3.7%, but down 6.7%; export volume is estimated at 8.52 million tons, growth of 0.7%, but the year fell 1.9 percent.
     Nippon Steel, vice president of China International Capital Corporation live in the iron and steel enterprises ShinyaHiguchi normal monthly regular meeting, said Japan's gradual recovery in steel demand, but demand for the steel industry should not have unrealistic expectations, Japanese steel mills to increase steel production need to be more cautious ʱ?? ShinyaHiguchi also said that inventory adjustments mills planned completion in late August, but August vacation more working time reduction means less steel shipments, inventory adjustment will therefore likely be completed by the end of September.