Japan H-Beam Output Rises by 9.4% in 2007

Japanese H-beam output increased by 9.4% to 4.86 million tonnes in 2007 from 2006 while small bar output decreased by 1.1% to 11.97 million tonnes. The H-beam output was the highest level after 5.76 million tonnes in 2000. The makers increased the export along with relative strong domestic demand for major buildings while the monthly output decreased in November and December from a year earlier. The small bar output decreased due to very slow building activity since September. The small bar output reached 11.12 million tonnes in 2005 and 12.1 million tonnes in 2006 under booming condominium building activity. However, the demand dropped sharply after new building standard law started in June 2007. H-beam output increased in 2007 from 4.44 million tonnes in 2006 and 3.88 million tonnes in 2005. Strong domestic demand for redevelopment building activity in urban areas lifted the output. The makers increased the export to cover slower domestic demand. With lower demand, distributors’ small bar inventory increased to around 65% of the shipment recently compared with around 55% in January-June 2007. The H-beam inventory also increased to around 85% of the shipment compared with around 75% in first half of 2007.