Japan May crude steel output recovers to 9 mln tonnes

Japan May crude steel output recovers to 9 mln tonnes. Japan's crude steel output recovered to 9 million tonnes in May, following a dip in April in the aftermath of the March earthquake and tsunami, as steelmakers stepped up production in anticipation of a quick recovery in the car sector. Japan's crude steel output in May totaled 9.05 million tonnes, down 7 percent from a year earlier, the Japan Iron and Steel Federation said, marking a third-consecutive year-on-year decline. Compared to April, the seasonally-unadjusted output jumped 7.3 percent as Sumitomo Metal Industries Ltd's 8.3 million tonnes Kashima works, which was the closest of Japan's mills to the magnitude 9.0 quake's epicentre, came back on line. "Domestic demand is still not strong enough," said an official at the industry body. "But Japanese steelmakers are expected to continue raising output in the coming months in anticipation of a faster-than-expected recovery in the auto sector." The industry body expects Japanese crude steel output to drop to just below 110 million tonnes this financial year to March 2012, slightly below the 110.8 million tonnes of output the year before. It expects a robust recovery in the auto sector after October to help offset a post-quake plunge in output. 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.