Japan H-Beam Demand to Rise by 8% in F2006, Nippon Steel

Nippon Steel expects Japanese H-beam demand will be just more than 900,000 tonnes in January-March, which is slightly higher than same period of 2006. The demand will increase by around 8% to 3.9 million tonnes in the year to March 2007 from 3.6 million tonnes in previous year.The firm expects the demand in January-March exceeds the level in same period of 2006 with higher order when private sector increase the capital expenditure and the buyers are expected to start purchase of materials in February and March for major commercial buildings projects. Private sector will increase the expenditure for construction by 5.1% to 901.051 billion yen in January-March from same period of 2006, according to Construction Research Institute. The institute estimates the expenditure will increase by 10.7% to 2.877 trillion yen in the year to March 2007 from previous year. H-beam domestic demand is estimated to be 900,000 tonnes in April-June 2006, 950,000 tonnes in July-September and 1 million tonnes in October-December. The domestic shipment increased by 11.1% to 2.932 million tonnes in April-November from same period of 2005, according to Japan Iron and Steel Federation.