Japanese Gas Pipe Supply may Short after Jan-Mar 2008

The supply and demand of the gas pipe made by integrated steel makers is expected to become tight after January-March 2008 in Japan. In now, the order for gas pipe is moving back due to the revision of the building standards law in June. However, maker source said the demand would recover by degree after October and the order would focus after January-March 2008. Japanese integrated steel makers will keep the production to the level of the demand. But they forecast they can’t efficiently supply due to rising demand. Makers or pipe dealers have been prospected the supply and demand would become tight step by steel due to the recovery of the demand after autumn. But maker source said some orders move back for more few months compared with originally plan. Big redevelopment project is scheduled around Tokyo. Big plant building projects is much for such as Sakai plant of Sharp. Japanese integrated steel makers are beholding the market movement. Maker source said the production capacity is restricted due to tight supply and demand for all steel products and makers may be not able to supply adequately if the demand stay focus.

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