Japan Rebar Output Drops by 6.1% in 1H, F2008

Japanese rebar output decreased by 6.1% to 5.776 million tonnes in the first half of fiscal 2008 (Apr-Sep 2008) from the same period of last year when the demand decreased in confusions after the revision of Japanese building standard law for April-June and sales decline of condominium buildings in July-September. The output is expected to decrease in the last half of fiscal 2008 when general contractors hold off after summer.

H-beam output increased by 1.9% to 2.518 million tonnes in 1H of F2008, which kept over 400,000 tonnes per month for May-July. Because Japanese integrated steel makers and electric furnace steel makers raised the selling price, the dealers increased front-loaded orders due to the anticipation of high prices. Small-middle size shaped steel output decreased by 1.9% year-on-year to 701,500 tonnes in 1H when the makers enhanced the output reduction. Common steel wire rod output decreased by 2.2% to 526,000 tonnes.