Japan Rebar Demand Forecasted to Decrease by 5% for July-September

Japanese concrete reinforcing steel bar shipment for domestic market is forecasted to decrease by 5% to 1.8 million tonnes for July-September from April-June. The volume would be lower by 30-40% than the recent peak in 2006 and by 50% than economy bubble period in 1990. Rebar shipment is likely to maintain low level when new construction activities are stagnant though postponed constructions recently tend to be restarted.

Rebar shipment for domestic market is estimated at 630,000 tonnes in April, 610,000 tonnes in May and 600,000-650,000 tonnes in June. The demand seems to have improved slightly from 1.73 million tonnes in January-March but decreased from 1.9 million tonnes in April-June 2009.

The shipment is likely to decrease more in July-September due to summer holidays and low investing intentions for buildings and condominiums in the market. Domestic condominium inventory decreased to 5,700 units in May but the sales of new rooms maintained low at 3,000 units.

Rebar demand is also likely to decline from civil engineering. Japanese governmental budget for civil engineering is forecasted to decrease by 18% in fiscal 2010 ending in March 2011 compared with fiscal 2009.

Non-Integrated Steel Producers’ Association forecasts rebar demand decreases by 4% to 7.12 million tonnes through fiscal 2010 from fiscal 2009. However, the demand may represent below 7 million tonnes.