Expect extra 1.5 mln ton steel demand from Japan this year

Expect extra 1.5 mln ton steel demand from Japan this year. South Korean steelmaker Posco said Thursday it expects an extra steel demand of 1.5 million metric tons from Japan this year as the earthquake-hit country needs more steel products to reconstruct damaged infrastructure. The world's No. 3 steelmaker by output revised its sales target for this year to 35 million tons from 34 million tons due to the expected higher demand. It said it is also considering raising steel prices by an average of KRW200,000 a ton in the second quarter of the year to pass on higher raw materials prices, but said it "won't be able to fully pass on the costs" to clients. South Korean shipbuilders and cold-rolled steel companies last week also made requests to Posco to produce additional steel products, including shipbuilding plates, to prepare for a possible shortage of the materials following the March 11 quake and tsunami.