Japan Building Steel Demand to Rise in 2010

Japanese demand of steel products for building will increase in fiscal 2010 starting April from fiscal 2009, which is the first increase in 4 years, according to Japanese steel makers. An integrated steel maker source said the demand increases for major building projects in Tokyo and Osaka in and after autumn. The steel makers expect higher order for H-beam, large diameter square pipe, angle and channel mainly in major metropolitan areas while the demand is uncertain for civil works.

The steel demand for steel structural building increases by 2.5% to around 4 million tonnes in fiscal 2010 from fiscal 2009. The H-beam demand increases slightly to around 2.7 million tonnes. The demand will increase by 20% to around 180,000 tonnes for press and welded square pipe while the demand is same level at around 280,000 tonnes for rolled square pipe.

Japanese manufacturers are preparing for restart of pending capital expenditure while major redevelopment projects are expected to start in second half of fiscal 2010. A trading firm source said major building structure fabricators apparently secure around 800,000 tonnes of order so far.

However, the demand is still uncertain for distributors’ market when middle and small sized steel structure fabricators get low level of order receipt. Expected steel price hike would also impact on the domestic demand.