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                                        Demand of construction steel of Japan to drop in June this year

According to the data that is released by Japan’s Ministry of Land, Infrastructure, Transport and Tourism (MLIT) on Thursday that in June, ordinary carbon steel requirement from Japan's construction sector is predicted to drop by 0.3% year on year but increase 6.5% from May to 1.65 million tonnes. Within the June projection, sections demand is anticipated to increase by 3.7% year on year but descent 7.9% from May to 350,000 mt, while those for small bars is predicted to fall by 5% year on year but upsurge 11% month on month to 600,00 mt.
A Tokyo-based construction steel trader reported that in June, demand of construction steel will budge lower, the decline is marginal and is not a reason for distress. He further added that, we apprehend Japan's construction steel demand endures to stay stable. He said that further construction plans are scheduled after July, so demand is likely to upturn. The producers of construction steels will be more belligerent in fluctuating their greater input costs to product prices before they are given more demands. He then added that scrap prices have debilitated and general contractors have restricted their reservation of construction steel as they observe the price fluctuation. As other input costs for steel producers have increased, they cannot lessen their product prices. In Tokyo, the recent market prices of senior-sized H-beams are at Yen 84,000 to 85,000/mt which is $767-$776/mt and of base-sized rebar are Yen 73,000-74,000/mt, both up Yen 1,000/mt from a month before.

• [Editor:janita]