Japanese domestic demand for flat steel bar is forecasted at 900,000-950,000 tonnes per year through fiscal 2009 ending in March 2010, which would shrink by about 15% from fiscal 2008 and represent below 1 million tonnes for the first time in 24 years, according to a flat steel bar maker.
The demand has declined since late 2008 along suspension and postponement of many construction projects. Another factor is that construction and industrial machine makers’ output temporarily shrank by about 30% year-to-year. In the second half of fiscal 2009, the demand is expected to turn into gradual recovery. The monthly demand was averagely 70,000 tonnes per month in the first half of fiscal 2009, minus by about 35% year-to-year. For October-December, the demand is expected to exceed 80,000 tonnes per month thanks to the recovery in construction market. The demand is likely to keep the same level for January-March. A distributor in Tokyo said wholesalers’ shipment maintains low. The demand hit the bottom in April-June but recovered by only 10-20% in July-September. Meanwhile, some distributors expect for the increase of domestic construction projects. Domestic shipment of flat steel bar totaled 1.26 million tonnes in fiscal 2007 and 1.07 million tonnes in fiscal 2008.M | T | W | T | F | S | S |
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Japan Steel Scrap Composite Prices (Sangyo Press)
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