Japanese steelmakers benefit from Asian demand

Japanese steelmakers benefit from Asian demand

It seems that all major Japanese steelmakers, in preparations to release their annual results for the year ending this month will see a considerable raise in their results, contrary to the gloomy outlook of last year, with the influence of strong demand for automobile and construction steel in their top export markets of South Korea and China. The cost cutting measures as well as restructuring and consolidation programs added on top of the rising prices have also helped the Japanese companies to boost their results. Most analysts believe that positive developments can also be expected for this year depending on the price rises maintained by the producers, particularly for steel sheets for automotive industry. Mainly the exports into China play a significant role to support Japanese producers' sales, and despite the existence of safeguard measures at that destination, Japan still has plans to carry out exports there in 2003.