Column Demand to Hit Historical Low for F2009

Japanese steel column demand would decrease significantly for fiscal 2009 started April compared with estimated 470,000-480,000 tonnes in fiscal 2008, according to a major column maker source. The demand for fiscal 2009 is less than 500,000 tonnes, which was the recent bottom recorded in fiscal 2001.

The column demand for fiscal 2008 is likely to decrease to 470,000-480,000 tonnes from 530,000 tonnes from fiscal 2007, which represents more than 30% decline from peak of 700,000 tonnes in fiscal 1996 and drops to less than 500,000 tonnes for the first time in recent years. The demand seems to decrease by around 40% to 200,000 tonnes for second half of fiscal 2008 from the first half. For October-December, the demand would be 120,000 tonnes as same as corresponding period a year ago. However, for January-March, the demand seems to be 80,000 tonnes, which represents remarkable low.

A maker source estimates the demand decreases to 80,000-90,000 tonnes for April-June 2009 from 130,000 tonnes for same period last year while it increases form the bottom in January-March. For July-September would keep same level.