Japan Steel Frame Demand Increases by 7.1% in F2010

Japanese steel frame demand increased by 7.1% to 4.184 million tonnes in fiscal 2010 ended in March 2011 compared with the previous fiscal year when domestic business conditions recovered, according to Ministry of Land, Infrastructure, Transport and Tourism. The demand decreased by 1.71 million tonnes in fiscal 2010 compared with fiscal 2008 while is expected to continue slightly increasing for large building construction projects around Tokyo in fiscal 2011.

The demand had exceeded 7 million tonnes until fiscal 2006 while decreased after fiscal 2007 every year. The demand for building construction and civil engineering maintained low level. In fiscal 2009, the demand especially dropped due to global economic downturn.

Public investment decreased in fiscal 2010 while domestic business condition recovered slightly. Large building construction projects were relatively firm around Tokyo. Manufacturing industry also increased business investment. Steel flame demand hit bottom.

The demand recovery is slow in local regions or for small-middle size building projects. The demand is likely to maintain the same level or grow slightly in fiscal 2011. Building construction is expected to be called off by influence of earthquake. The demand for restoration from earthquake would generate slightly.