Japanese demand for reinforcing concrete bar is expected to decrease by 5-10% in the last half of fiscal 2007 ended March 2008 compared with the corresponding period of fiscal 2006 impacted by the revision of Japanese building standard law. In the first half of fiscal 2007, the demand for the building construction was strong mainly for office buildings or condominiums around Tokyo, Nagoya and Osaka and seemed to increase by 2% to 5.7 million tonnes in the first half of fiscal 2007 from a year ago. The influence by the law revision is expected to continue in October-December.Rebar makers’ production is prospected to decrease by 5-10% to 5.2 -5.4 million tonnes in the last half of fiscal 2007 compared with the same period of last year. Because new orders from general contractors are slower, the makers’ output may decrease in October-December. The output in the last half of fiscal 2007 would show year-to-year decrease for the first time in 3 years as a second half year.Rebar makers announced they reduce the output by 10-20% in the last half of fiscal 2007 compared with every year and adjust the supply and demand. If the demand would more decrease, the makers will more reduce the output. The demand may increase in January-March 2008. Maker source said the demand is unsure to recover within fiscal 2007. Makers will continue output adjustment with the demand level.
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Japan Steel Scrap Composite Prices (Sangyo Press)
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