Japan Rebar Demand Drops by 25% for Jan-Mar

Japanese rebar demand is expected to decrease by 25% to 1.9-2 million tonnes for January-March from the same period of last year. The annual demand may total approximately 9 million tonnes for fiscal 2008 (Apr08-Mar09), decreasing by about 15% from fiscal 2007.

Rebar demand was around 2.7 million tonnes for April-June 2008, around 2.4 million tonnes for July-September and total 5.1 million tonnes in the first half of F2008. The demand is expected to decrease by 25% to 3.9 million tonnes in 2H of F2008 compared with 1H of F2008. There is difference in the decreasing rate by regions. The rebar shipping volume around Tokyo decreased by about 15% for November-December from the same period of last year while the shipping volume around other area decreased by 40%.

A major general contractor source said they will need to procure rebar from March with large building construction projects in spring. However, the order by middle class general contractors is unclear in near future.

A rebar maker source said the building construction projects are now waited and seen due to economic downturn but the demand may revive if market price rebounds. Governmental public projects are also expected.