For June, Japan’s newly-launched non-timber buildings rose by 10% on year to 6.59 million sq m, according to the latest statistics released by the country’s Ministry of Land, Infrastructure, Transport and Tourism (MLIT). Market sources shared that construction steel demand is expected to stay firm for the second half of this year.
The June result was also 17.7% higher on month, and that for January-June approximated 35.68 million sq m, up 4.9% on year, the MLIT data showed.
A construction steel trader in Tokyo observed that the rise in June might have to do with the slow base in May as high steel prices had affected the launch or progress of new construction projects.
“But the launch of new projects in June had covered the drop in May, and we expect construction steel demand to stay firm for the next six months at least,” he said.
Actual steel demand for new construction projects usually appears about six months after the launch, Mysteel Global notes.
Among the total, newly-launched steel-framed buildings – which consume more beams and sections – totaled 4.25 million sq m, up 3% on year and 24.4% higher on month, and those over January-June approximated 22 million sq m, up 0.4% on year.
Meanwhile, those of reinforced concrete buildings – which consume more rebars – were 2.13 million sq m, up 32.1% on year and 18.6% higher on month, and those for the first six months approximated 12.07 million sq m, 10.4% higher on year.
A sales official from an electric-arc-furnace steel producer in Tokyo shared that inquiries for construction steel had been increasing and he expected more actual orders will be placed after Japanese steel market returns from the country’s Bon holiday in mid-August.
“We heard that some construction projects were delayed over higher-priced steel products and other construction material prices. But more new projects are expected, and we believe that Japanese construction steel demand will stay firm for a while,” he predicted.
The latest data from Japan Iron & Steel Federation showed that carbon steel ordered for building construction over January-May approximated 2.55 million tonnes, up 4.3% on year.
Written by Yoko Manabe, yoko.manabe@mysteel.com
Edited by Zhenqi Yang, yangzhenqi@mysteel.com
This article has been published under an article exchange agreement between Mysteel Global and SteelMint.
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