Japan Rebar Demand Forecasted at 7.7-7.8 Million Tonnes in F2011

Japanese rebar shipment to domestic market is forecasted at 7.7-7.8 million tonnes in fiscal 2011 (April 2011-March 2012), increasing slightly from fiscal 2010, according to rebar steel makers and dealers. Rebar demand is gradually recovering along building projects around Tokyo such as condominiums, schools and hospitals. However, material procurement by end users maintains still weak across the country. The demand was 7.4 million tonnes in fiscal 2009 and is estimated to be 7.4-7.5 million tonnes in fiscal 2010.

The demand hit the peak at 14 million tonnes in fiscal 1990. The volume maintained above 10 million tonnes until fiscal 2007 while decreased to 8.7 million tonnes in fiscal 2008 due to Lehman’s fall.

Rebar consumption for building constructions accounts for 80% of total demand and civil engineering 20%. Japanese enterprises are shrinking domestic investment while civil engineering is decreasing. Thus rebar demand keeps low level. Rebar demand for civil engineering decreased to 1.7 million tonnes in fiscal 2008, 1.5 million tonnes in fiscal 2009 and is estimated to represent below 1.4 million tonnes in fiscal 2010.