Japan runs out of steel. Korea "might" help

[Mulboyne]

FT: Nissan steel shortage forces plant shutdowns

Nissan Motor, the Japanese carmaker, has been forced to stop production at three of its four car assembly plants in Japan for five working days after running out of steel, in a dramatic illustration of the shortages that have started affecting companies across Asia...The tight supplies have led to sharp price increases, bumping up companies' costs and eating into profit margins. Cold-rolled steel sheet prices have risen 23 per cent in Japan in the year to October, according to UBS...Analysts argued Nissan deserved part of the blame for its steel shortages because, as part of an aggressive cost-cutting drive, it had reduced the number of steel suppliers it dealt with in Japan from five to two.

AFP via Yahoo: Steel-guzzling China puts world's auto industry on edge

Nissan's unprecedented decision to temporarily cut output due to a lack of steel shows how extreme the world's supply problems have become as China's huge economy consumes more and more basic materials...."We're in an extremely tense situation and the slightest problem threatens to (be felt) by the consumer industries," said Franco Mannato, a steel specialist at the Organization for Economic Cooperation and Development in Paris.

Reuters: Posco says to supply part of Nissan steel request

POSCO Co. Ltd , the world's fifth-largest steel maker, said on Friday it planned to supply at least part of the emergency steel supplies Nissan Motor Co. has requested. "It will be impossible to supply all of the amount Nissan has requested, but we'll supply a limited amount of steel (to Nissan) as long as the additional supply does not disrupt steel supply to domestic carmakers," said a spokesman for the South Korean firm. He did not elaborate.

[Taro Toporific]

Nissan may cut output again on steel shortages
FT.com / December 2 2004 09:22
The ongoing steel crisis at Nissan Motors may force the company to reduce production by a further 15,000 vehicles in March on top of the 25,000 that have been lost from the closure of most of its Japanese plants for five days, Carlos Ghosn, president, said on Thursday....more...

[Mulboyne]

FT.com: Suzuki forced to cut car output
Suzuki, Japan's leading minicar maker, said yesterday it would close two domestic factories for a total of three days this month due to a shortage of steel parts. The move came on the heels of a similar announcement by Nissan Motor, which cut output by 25,000 vehicles after being forced to close three of its four plants in Japan for five days after running out of steel. Suzuki said its plant closures, which fall on holidays in December, would result in a 13,000-vehicle decline in planned output.
...Nissan warned on Thursday that despite securing additional steel supplies from Posco of South Korea and the possibility of more stock from French steelmaker Arcelor, it may need to reduce production by a further 15,000 vehicles in March, when demand for new vehicles in Japan typically hits a peak. Toyota Motor is taking action to reduce the amount of steel it uses in its cars and has held talks with China's Baosteel to provide it with extra supply.

[devicenull]

you know, it is funny... i read this as i drink some delicious roots coffee out of a steel can.