Japan''s steel industry body said that it expects crude steel output in the country to drop to just below 110 million tonnes in the 2011-12 financial year from 110.8 million tonnes in 2010-11.
Mr Eiji Hayashida chairman of the Japan Iron and Steel Federation, said that the pace of recovery in auto production, a key steel user, has picked up since mid-May beyond expectations as parts makers come back online,
He said tat "We expect domestic car output to recover to at least 90% of the year ago level, or 8 million units this year, even with power cuts. This is a bright sign.”
Mr Hayashida said he expected Japan''s crude steel output to stay below 26.9 million tonnes this quarter but rise to 27 million tonnes in the July-September quarter.
Japan aims to cut electricity use by 15% in regions affected by the March 11 earthquake from July 1 to avoid power blackouts during the peak summer demand period.
( Source: www.steelguru.com )