Japan H-Beam Demand to Drops in F2007

Japanese H-beam demand will decrease to less than 4 million tonnes in fiscal 2007 ending March 2008 for the first time in 2 years, according to estimate by industry sources including Nippon Steel. The demand decreases to 3.9 million tonnes, which is around 5% lower than fiscal 2006 due to very slow building activity under confusion for new building standard law. The demand is expected to keep the level for fiscal 2008. The demand is estimated to be around 1.85 million tonnes for October-March period compared with 2.05 million tonnes in April-September 2007. The demand drops for the second half of fiscal 2007 when the new building standard law started in June. The demand increased to 4.1 million tonnes in fiscal 2006 compared with 3.6 million tonnes in fiscal 2005. The demand was expected to be more than 4 million tonnes for fiscal 2007 but the demand slowed down. The price, however, is likely to increase under cost up pressure for the makers. Tokyo Steel Manufacturing announced the 6,000 yen per tonne hike for February order. The other makers are expected to follow the move. The distributors try to pass the higher cost price on the market.