Japan Steel Demand Rises for Building Structure

Japanese steel demand increases for building structure. The demand increased by 12.0% to 329,100 tonnes in February from a year earlier, which increased for 3 months in a row. The demand recovers recently while the demand recorded year to year decrease in September to November in 2011 due to the major earthquake. The demand is expected to increase gradually.

The demand is based on building start floor space. The demand is averaged monthly 362,000 tonnes or annual 4.3 million tonnes in fiscal 2011 ending March 2012, which is around 5% higher than fiscal 2010. The demand is expected to increase in fiscal 2012.

The demand could slow due to limited availability of construction workers. The workers focus on the rebuilding activity in damaged area by the major earthquake. General contractors try to secure the workers but some building schedule delays due to the limited availability of the workers.