Japan's ministry of economy, trade and industry compiled and released forecast of steel demand for July t0 September quarter of 2011.

According to this, forecast of crude steel production is 26.290 million tonnes in this quarter which increased slightly by 1.5% from the previous quarter and decreased by 1.6% from the same period last year.

That of total steel demand is 23.520 million tonnes, largely up 7.1% from the estimated results of previous quarter.

However, as inventories of steel are entering the cautionary zone, the ministry has pointed out necessity to give priority to adjustment of inventories by curbing production.

By steel grade of demand in this quarter, that of ordinary steel is 18.780 million tonnes, up 6.0% from the previous quarter and down 1.3% from the same period of last year.

That of specialty steel is 4.740 million tonnes, up 11.8% QoQ and down 9.1% YoY.

Recovery of the automotive industry will contribute to increase of specialty steel by turning around a supply chain among the manufacturing industry.

Forecasted domestic demand on ordinary steel is 11.780 million tonnes, up 6.9% QoQ and down 3.5% YoY.

In addition to the automotive industry, increase of non housing construction such as earthquake resistant construction of schools among the construction industry will contribute to it.

Export of ordinary steel is estimated as 7 million tonnes, up 4.5% QoQ and also up 2.7% YoY due to resumption of export by a restored earthquake stricken company despite of no change in the environment of export.

(Sourced from The TEX Report)