Japan H-beam Demand to Keep Improving

Japanese H-beam domestic demand will be 1 million tonnes in October-December, which is slightly higher than same period of 2005, according to estimate by Nippon Steel. The firm expects the demand will be around 900,000 tonnes in January-March resulting in 3.7 million tonnes for the year ending March 2007, which is higher than just more than 3.6 million tonnes in previous year. The demand will keep firm for private sector’s capital expenditure and redevelopment of metropolitan area. Construction Research Institute expects private sector plans 2.698 trillion yen of capital expenditure in October-December, which is 16.8% higher than same period of 2005. H-beam distributors’ shipment increased to 153,000 tonnes in September, which was first over 150,000 tonnes shipment in 10 months, according to Tokiwa-kai, which is group of distributors dealing Nippon Steel’s H-beam. Tokiwa-kai reported H-beam inventory decreased to 268,900 tonnes at the end of September, which represented 1.75 months for the shipment and decreases for 6 months in a row. The shipment recovers and the inventory is normal level. H-beam domestic demand is estimated to be around 900,000 tonnes in April-June and around 950,000 tonnes in July-September. H-beam output increased by 18.9% to 2.24 million tonnes including that for export in April-September from same period of 2005, according to Japan Iron and Steel Federation.