Japan H-Beam Demand to Rise by 5% in October-December

Japanese H-beam demand will increase by around 5% to around 700,000 tonnes except for products with fixed outer dimension in October-December from July-September, according to integrated steel maker sources. The demand improves from the bottom when some building projects were restarted. However, the demand is still around 15% less than a year earlier level. The demand is expected to keep the relative low level through the year to March 2010.

The integrated steel makers expect the demand will decrease by more than 20% to around 2.7 million tonnes in fiscal 2009 ending March 2010 from fiscal 2008. The demand, however, improves from just less than 700,000 tonnes in July-September and 650,000 tonnes in April-June.

The demand is expected to around 700,000 tonnes in January-March 2010 as October-December 2009 and January-March 2009. The demand usually decreases in January-March from October-December but the demand recovery is expected to cancel the seasonal decrease.

The demand, however, is still low level despite of the recovery sign for private building sector. The demand increases around Tokyo due to some major projects including redevelopment in Shinjuku while the demand is still slow in other areas.

Some major projects could start in October-November, according to a major real estate company. However, the projects contribute to higher H-beam demand only in and after April 2010. The demand increases for civil works in July-September but the demand could slow down in October-December.