Japanese Non-Integrated Steel Producers’ Association’s chairman Katsutoshi Kurikawa said at monthly press meeting in Tokyo on Monday Japanese concrete reinforcing steel bar demand could decrease in 2012. He said steel demand would increase for rebuilding activity in the major earthquake damaged area in 2012. However, he said the building starts would not increase in all Japan in 2012 from 2011 while the figure would not significantly decrease.
Mr. Kurikawa warns Japanese building starts decreased in square meters in year to year for 2 months in a row through October while the building starts was firm for reinforced concrete structure. Mr. Kurikawa said 814,000 tonnes of rebar output in October was in line with the demand. He sees the supply is balanced while some in the market see the output was more than the demand when the output reached 800,000 tonnes for the first time since October 2008. He Hsaid Japanese ferrous scrap market price is lower at less than 30,000 yen per tonne compared with the price of iron making material. However, he said the scrap price would gradually increase while Japanese integrated steel makers’ iron ore and ferrous scrap consumption stays at low level due to steel output reduction.Japan Steel Scrap Composite Prices (Sangyo Press)
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