UPDATE 1-Nippon Steel sees Asian steel prices' rapid rise as unsustainable

jueves 28 de abril de 2016 08:48 GYT
 

* No sign of strong pick-up in China demand-Nippon Steel

* Nippon Steel's FY15/16 steel output dips 6 pct

* JEF eyes small rise in FY16/17 production to 28 mln T (Adds quotes, earnings and Usiminas comments)

By Yuka Obayashi

TOKYO, April 28 (Reuters) - Nippon Steel & Sumitomo Metal Corp, the world's second-largest steelmaker, expects the rapid rise in Asian steel prices is unsustainable given the increase in China's steel output and exports in March, an executive said on Thursday.

The global steel industry has been struggling with overcapacity and sluggish demand in the world's top buyer, China.

China's steel prices have surged 45 percent so far this year, fuelled by tighter supply due to shutdowns in the past year, but industry officials have raised doubts that the rally will continue.

"There is no clear sign of a strong pick-up in China's local demand," Nippon Steel Executive Vice President Toshiharu Sakae told a news conference. "We don't expect run-up to continue at the recent pace."

China's steel production hit a record high of 70.65 million tonnes in March, amounting to 834 million tonnes on an annualised basis.   Continuación...