Japan's November crude steel output rises yr/yr for 13th month

Japan's November crude steel output rises yr/yr for 13th month. - Nov output below 9 mln tonnes first time in three months - Japan 2011/12 crude steel output seen flat 110 mln tonnes - Steel exports in 2011/12 seen flat at around 40 mln tonnes Growth in Japan's crude steel production slowed in November after strong output of over 9 million tonnes in the previous two months boosted the level of domestic inventories to a 22-month high at the end of October. Crude steel output in November fell 5.5 percent from October to 8.98 million tonnes. The figure is not seasonally adjusted. Output rose 1.4 percent from a year earlier for a 13th consecutive month of year-on-year rises, the Iron and Steel Federation of Japan said on Monday. Monthly output fell below 9 million tonnes for the first time in three months. "We are closely watching the level of inventories as they have already approached a dangerous zone," Eiji Hayashida, chairman of the steel industry body, told a news conference. Japan's steel stocks swelled to a 22 month-high of 6.53 million tonnes at the end of October. The industry body also said it expects Japan's crude steel output to stay flat at around 110 million tonnes in the 2011/12 financial year that begins next April 1. "A steep rebound in domestic demand is unlikely, but a slight recovery in housing and corporate capital investments would help, even if domestic car output edges down," said Hayashida, who is also president of JFE Steel Corp (5411.T: Quote) the world's No.5 steelmaker. Japan's steel exports will also stay firm during the year at around 40 million tonnes or the same as in the current year, as Asia's demand growth will continue and help Japanese steel firms to maintain exports even as the yen stays at a high level, he said. After a sharp fall in the 2008/09 financial year, the industry body expects Japan's crude steel output to rise to around 110 million tonnes in the current financial year to March 31.