Japan Oct crude steel output rises 3 pct mth/mth

News was prepared under the information support of Online Daily Newspaper on Hellenic and international Shipping "Hellenic Shipping News".

20 Nov 2010

Japan's crude steel output rose 3 percent in October from the previous month, but the yen's strength and a decline in domestic demand could depress output in the months ahead, an industry body said on Friday. Crude steel output , which is not seasonally adjusted, rose to 9.51 million tonnes in October, the second consecutive month-on-month gain, helped in part by fewer days in September, the Japan Iron and Steel Federation said on Friday.
From a year earlier, output increased 8 percent for the 12th consecutive year-on-year rise.
"October output was relatively solid, but we expect the yen's surge against the dollar and the end of government subsidies for environmentally friendly cars to start having a negative impact in and after November," an industry official said.
Tumbling steel prices in China are also a worrying sign as lower prices in China tend to drag down export prices for Japanese steelmakers.
Spot steel prices in China's domestic market fell this week amid growing concerns of tightening liquidity from a possible interest rate increase.
Stronger signals that China, the world's second-largest economy, is likely to tighten monetary policy via a second rate hike to fight inflation, have triggered widespread concerns and pushed down Shanghai rebar futures dramatically.
Steel prices on the Chinese market are expected to stay volatile through the last two months of the year due to weak demand, the China Iron & Steel Association (CISA) said this week.

Source: Reuters