Bloomberg reported that Japan's biggest steelmaker Nippon Steel Corp expects prices to stay low this year as global producers of steel continue to compete for orders amid slowing demand.

Mr Shinichi Taniguchi EVO said in an interview in Tokyo “The current situation won't change so easily. The yen is also likely to remain high,” putting Japanese mills at a disadvantage compared with their Chinese and South Korean rivals.”

He said “The strong yen is hitting Japanese manufacturers like a body blow. We expect an oversupply of steel in Korea, Japan and China.”

Nippon Steel relies on exports for 40%of its shipments but it had to cut exports by 4% in the first 11 months of 2011.

The yen's strength has eroded profits at Japanese exporters as faltering global growth undermines demand. The yen averaged 77.33 per dollar in the quarter ended December compared with 82.50 a year earlier. It climbed to a post World War II high of 75.35 October 31.

(Sourced from Bloomberg)