Japan H-beam Demand May Become Below 3.7MT in F2008

Japanese domestic demand for H-beam is likely to become less than 800,000 tonnes for January-March 2009, decreasing by 20% from the corresponding period of 2008, according to a source of Japanese integrated steel maker. The previous demand forecast for January-March 2009 was approximately 950,000 tonnes in April 2008 and revised down to about 850,000 tonnes in November. The forecast is revised down again along economy recession. The demand would shrink by about 10% compared with October-December 2008. The annual demand for fiscal 2008 (Apr08-Mar09) may become below 3.7 million tonnes, decreasing by more than 300,000 tonnes from fiscal 2007.

A source of integrated steel maker said domestic H-beam demand is expected to maintain low due to manufacturing industry’s investment shrinkage and less construction and shopping malls along slower personal consumption. He said domestic H-beam demand might become less than 3.5 million tonnes in fiscal 2009. The demand is unlikely to recover in fiscal 2009 when many of large-size construction projects are postponed or canceled. Steel frame demand is afraid to become less than 6 million tonnes per year.