Japan 3 Steel Dealers’ Associations Show Concerns on Domestic Market

Japanese steel dealers’ associations, Japan Steel Products Dealer’s Association, Japan Coil Center Industry Association and Japan Steel Plate Shearing Industrial Guild, appealed concerns on domestic steel market at a hearing meeting conducted by Ministry of Economy, Trade & Industry on Tuesday. Domestic construction demand is unlikely to recover in a short term. Meanwhile, strong yen trend may cause steel consumers’ outflow to overseas though steel demand maintains steady from car, construction machine and industrial machine sectors.

Japan Steel Products Dealer’s Association explained the members’ inventory is estimated to decrease by 2.7% to 2.217 million tonnes at the end of September compared with June end while to decrease by 3% to 2.15 million tonnes at the end of December compared with September end. Steel dealers are likely to adjust their inventories with concerns on weak demand and price down.

Japan Coil Center Industry Association estimates the members’ shipment increases by 0.6% to 3.785 million tonnes for July-September compared with the previous quarter and increases by 2.2% to 3.87 million tonnes for October-December. The volume would increase slightly due to the cease of Japanese governmental program to stimulate eco friendly car purchase. The association gave a view that steel demand is unexpected steady from constructions and electric appliances in a middle term.

Japan Steel Plate Shearing Industrial Guild explained the members’ processing volume is estimated to increase by 1.2% to 500,000 tonnes for July-September compared with the previous quarter and to increase by 2% to 510,000 tonnes for October-December. Demand from domestic constructions, the main application field, stays stagnant especially for middle- and small-size buildings and bridges. Steel plate demand is recently recovering from construction and industrial machine makers but, the association explained, some makers are revising down output plans due to strong yen trend.