Sumitomo Metal Industries expects Japanese structural steel demand will increase to around 7 million tonnes for fiscal 2008 starting April from 6.5-6.6 million tonnes in fiscal 2007. The firm expects H-beam demand is flat at 4 million tonnes while the demand is around 650,000 tonnes each for sheet pile and pipe pile when the demand hits bottom. The firm expects light H-beam demand is flat at around 110,000-120,000 tonnes. The firm tries to improve the selling price level when Japanese steel industry experienced 500-700 billion yen of cost up for freight and raw materials other than iron ore and coal in fiscal 2007 and cost will increase for fiscal 2008 though the firm still negotiates for coal and iron ore other than Brazilian ore. The firm tries to pass the higher cost on the selling price. The firm expects Japanese construction steel products price level should increase to the international level when the market gets more global in Asia and Middle East. The firm tries to improve the domestic selling price when the firm gets higher price from offshore buyers.
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Japan Steel Scrap Composite Prices (Sangyo Press)
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