Japanese Inventory of Steel Building Material Stays High

Inventory adjustment has not progressed steadily for steel sheet of construction usages, though Japanese makers are halving the output from a year earlier. General contractors are holding conservative buying stances due to slower demand for buildings. Japanese integrated steel makers seem to fail in price hike of hot coil for a half year to March 2009 since the steel market price is decreasing. However, makers’ and dealers’ profits would worsen during the half year to March 2009 along the demand stagnancy.

Many building construction plans are postponed or canceled during October-December despite of the demand season in usual years. The demand used to weaken seasonally for January-March when building construction becomes stagnant by snow. Consequently, building material makers’ sales are likely to decrease for January-March from October-December.