The head of the Japan Iron and Steel Federation on Thursday said Japanese steelmakers will sharply cut exports to Asia in the January-March quarter, admitting that their export drive has been pushing down steel prices in Asia.
"I cannot help but say (deteriorating steel prices in Asia) are caused by Japan's export push," Akira Chihaya, also president of Nippon Steel Corp., told a news conference.
"It is an urgent task for Japanese steelmakers to recover steel prices in Asia," he said, adding that after adjusting exports to meet local demand, the Japanese steel industry hopes to open dialogue between public- and private-sector representatives from Japan, China and South Korea.
While Japan's crude steel production in 2000 was above 100 million tons for the first time in three years, at 106.4 million tons, the increase was not accompanied by rising profits, Chihaya said.
He said a decline in Japan's crude steel production in 2001 is unavoidable. Domestic demand is projected to rise slightly, but domestic inventory adjustments are likely to be needed, forcing makers to sharply cut exports, he added.
Industrial production drops
Industrial production fell a seasonally adjusted 0.8 percent in November from October, the Ministry of Economy, Trade and Industry said Thursday, maintaining the figure nominated in a preliminary report released Dec. 27.
The output index for the mining and manufacturing industries came to 105.5 against the 1995 base of 100, it said.
The shipment index declined 0.4 percent, a downward revision from a preliminary 0.3 percent, while the shrinkage in the index of inventories was revised to 0.5 percent from 0.7 percent.
The capacity utilization index fell 0.8 percent in November after adjustment for seasonal factors following a 1.2 percent rise in October, with the index coming to 98.4.
The unadjusted production capacity index posted zero growth and remained at 98.9, a setback of 1 percent from a year earlier.