Japan Rebar Demand Restores by Reconstruction after Great Earthquake

Mr. Kenji Hiwatari, managing director of Nippon Steel and chairman of Japanese rebar makers’ and dealers’ group, attended the association’s regular press meeting on Monday and said domestic rebar makers’ current production and shipment are steady for condominiums and other constructions and rebar market inventory is low thanks to the firm demand. He showed an expectation for reconstruction demand in the disaster areas of the Great East Japan Earthquake in 2012.

Mr. Hideichiro Takashima, chairman of Kyoei Steel and vice chairman of the association, alerted rebar makers should keep the output level along the actual demand in 2012 when ferrous scrap price is unstable and the demand condition is still unforeseeable especially for condominiums around Tokyo.

Mr. Toshiya Adachi, managing director of Mitsui & Co. Steel and vice chairman of the association, gave a view that new order volume to local rebar makers around Tokyo is likely to total 250,000-260,000 tonnes in December, increasing from 169,000 tonnes in November. He analyzed the demand could hit bottom in fiscal 2011 ending in March 2012 and rebound in fiscal 2012 along the demand upturn along redevelopment around Tokyo, construction of large warehouses or restoration in the disaster areas.

Mr. Koichi Shiota, steel division head of Ministry of Economy, Trade and Industry, also said rebar makers’ output and shipment are firm nowadays and expected to increase more in 2012.