Japanese domestic demand of H-beam will increase to 2 million tonnes in half year to March 2007 compared with estimated 1.9 million tonnes in half year to September, according to Sumitomo Metal Industries. The firm expects the demand will increase by around 100,000 tonnes to 3.9 million tonnes for the year to March 2007 from previous year. The firm expects the building structural steel demand will increase to 7.4-7.5 million tonnes for the year to March 2007 from around 7.2 million tonnes in previous year when high rise buildings and information technology industry plants are expected to use more steel in Tokyo and Osaka. International H-beam price is increasing under worldwide tight supply. Japanese H-beam export reached 30,000 tonnes in June for the first time in 2 years and 7 months. Japanese makers increase the export mainly for Asian countries. Sumitomo Metals exports 10-20% of H-beam output. Sumitomo Metals is willing to ship more for offshore market as long as the firm can secure same profitability as domestic market. Sumitomo Metals, which is the number 1 maker of light weight welded H-beam, expects the light H-beam demand could increase to 70,000-80,000 tonnes in half year to March 2007 and around 150,000 tonnes for the year to March 2007 from previous year. Steel structural prefabrication housing makers use the light weight H-beam, which is made through electric resistance welding of hot rolled coil, due to the high size accuracy and design freedom. Japanese housing start is expected to reach 1.25 million units for the year to March 2007 compared with 1.24 million units in previous year.
Japan Steel Scrap Composite Prices (Sangyo Press)
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