Japan Steel Demand to Reach 27.15 million tonnes in January-March

Japanese steel demand will increase by 0.3% or 80,000 tonnes to 27.15 million tonnes in January-March from same period of 2007, announced by Ministry of Economy, Trade and Industry on Thursday. The demand is 2.2% or 580,000 tonnes higher than October-December. METI expects the demand represents 28.86 million tonnes of raw steel output, which is 1.1% or 330,000 tonnes higher than same period of 2007 and 3% or 920,000 tonnes lower than October-December. METI expects the demand will increase for manufacturers including shipbuilding, automobile, construction and industrial machinery and heavy electric machinery in January-March from same period of 2007 while construction demand decreases due to further impact by confusion for new building standard law. The ministry expects the raw steel output should decrease for the first time in 4 quarters due to higher inventory for small bar and hot, cold and coated sheet steel. METI said the steel makers should reduce the output of building materials steel by around 30% to meet the very slow demand. METI also said the steel makers should improve supply condition for shipbuilding plate through closed communication with the users under tight supply when shipbuilders concern potential shortage.