Japanese Gas Pipe Demand Reduces by Over 20% in Jan-Mar 2009

The demand for gas pipe made by Japanese integrated steel makers is expected to lower by over 20% in January-March 2009 from the same period of last year when building construction is dropping due to economic deterioration and users are holding-off buying due to the anticipation of a fall. The demand for gas pipe in April-September 2008 decreased by 10% form the same period of last year.

Japanese piping construction awards decreased by 12.4% in August from a year earlier and by 12.4% in September from a year earlier, according to Ministry of Land, infrastructure, Transport and Tourism. The demand for gas pipe is uncertainty in the future when the construction of office building or condominium building is extremely low.

Many building construction plans is postponed or stopped when users are holding-off buying. Gas pipe outputs by Nippon Steel, JFE Steel and Sumitomo Metal Industries, Japanese integrated steel makers decreased by around 10% in the first half of fiscal 2008 for April-September compared with the corresponding of last year.