Downturn expected for Japanese iron and steel

While Japan's iron and steel industry has had a strong start to 2003, Invesco Perpetual's Paul Chesson believes the positive trend in the sector has run its course. Over the year to 17 February, the Topix Iron and Steel Index has returned 15.25%, in sterling terms, compared to the general Topix Index, which has made a marginal 0.15% gain. Chesson says a dip in supply from Japanese manufacturers and strong demand from China have been the principal factors behind the sector's strong performance so far in 2003. Steel prices had been depressed in Japan for some time, he notes. However, as ...