Japan Demand for Gas Pipe May Down by 5-10% for Jan-Mar

Japanese domestic demand for carbon steel gas pipes made by Japanese integrated steel makers is expected to decrease by 5-10% for January-March 2010 from October-December 2009 with few building construction projects and slow private equipment investment. Nippon Steel, JFE Steel and Sumitomo Metal Industries are under output reductions of gas pipes in balance with actual demand. Japanese makers’ gas pipe output is expected to total below 200,000 tonnes through fiscal 2009 ending in March 2010, the record low.

New construction or investment projects are remarkably decreasing for buildings and factories. Japanese subcontractors’ order receipts decreased by 25.1% in the first half of fiscal 2009 (April-September) from a year earlier, according to Ministry of Land, Infrastructure, Transport & Tourism. The Ministry forecasts the order receipts would decrease by 5-10% for January-March 2010 from October-December 2009.

Japanese integrated steel makers’ gas pipe output is expected to total below 200,000 tonnes through fiscal 2009 from 274,000 tonnes of fiscal 2008.