Japan High Grade Steel Tube Output Estimated to Exceed 220,000 Tonnes in F2010

Steel gas pipe production by Japanese integrated steel makers is expected to exceed 220,000 tonnes in fiscal 2010 ending in March 2011. The volume would recover largely from record low at 194,000 tonnes in 2009. The production may increase for 2 years in a row along with the demand recovery from domestic building constructions.

JFE Steel, Nippon Steel and Sumitomo Metal Industries output was estimated at 293,000 tonnes in fiscal 2003, 334,000 tonnes in fiscal 2004, 306,000 tonnes in fiscal 2005, and 320,000 tonnes in fiscal 2006. In fiscal 2007, the 3 makers’ production decreased to 297,000 tonnes due to negative effect of Japanese building standard law revision. The volume downed to 274,000 tonnes in fiscal 2008 along financial crisis and dropped 194,000 tonnes under weak economy.

In fiscal 2010, the output is expected to recover by over 10% from fiscal 2009 .The demand hit bottom in fiscal 2009 and building construction projects gradually restarted mainly in Tokyo. The demand is likely to continue recovery in fiscal 2011 mainly in urban areas. Private companies are restarting new investment while large building constructions projects are launched for completion in or after fiscal 2012.