Japan Rebar Makers Plan Major Production Cut in Yearend Holiday

Concrete reinforcing steel bar makers around Tokyo plan productive suspensions for the year changing period of 2009-2010 at average 10 days and maximum 21 days, almost as long as the same period of 2008-2009. The rebar makers are already in wide output reductions by irregular suspensions on weekdays before the non-demand season of January-March. Local rebar makers’ productions currently total approximately 200,000 tonnes per month, lower by 30% than a year earlier.

Godo Steel’s Funabashi plant will suspend the steel production from December 22nd to January 6th and the rolling process from December 20th to January 6th. Tokyo Tekko’s Tochigi plant will close from December 30th to January 3rd with additional 10-day suspension within December. Itoh Iron & Steel’s Tsukuba plant will shut down from December 30th to January 4th. Asahi Industries planned suspension for 5-6 days but may reduce rebar production more.

Among smaller sized rebar makers, Sanko Seiko will shut down from December 28th to January 4th, Mukoyama Steel Works from December 28th to January 6th and Jonan Steel Corporation from December 20th to January 9th. Kanto Steel plans year-end and new-year closing from December 30th to January 5th and additional one week suspension in January. Daiwa Steel Corporation’s Saitama plant will shut down from December 28th to January 7th. Chiyoda-Steel hasn’t fixed the closing schedule for the year changing period but examines more output reduction.

Local rebar makers’ order receipts were likely to total below 100,000 tonnes in November due to stagnant demand from construction and civil engineering. Their order receipts totaled approximately 300,000 tonnes per month in July and August while dropped to 170,000 tonnes in September and 100,000 tonnes in October. The demand is unexpected to recover in a short term.