Demand for construction steel in Japan is expected to decline in May as some of the leading construction companies in the country announced to stop operating in response to the coverage of the current emergency situation. from the COVID-19 pandemic.
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Major construction brands such as Daiwa House, Kajima Corp, Obayashi Corp, Shimizu Corp, Taisei Corp and Toda Corp have all announced construction cessation until at least May 6.
“In order to cooperate with government policy, Shimizu will also, in principle, close the locations of additional designated warning districts until the end of the emergency, consult with the related parties, “the company said.
The closure of the venues dealt another blow to steel demand as the delay lasted nearly 3 weeks, until after the Golden Week holiday in Japan, which ended May 6.
In response to weaker local demand, steelmakers like JFE Steel Corp said they would suspend two blast furnaces at Western Japan Works at Kurashiki and Fukuyama in April and June.
In the second half of April, Nippon Steel also cut production at two blast furnaces at East Nippon Company in Kashima, Ibaraki and Kansai Works in Wakayama.
Japan’s Ministry of Economy, Trade and Industry (METI) expects steel demand to fall 26% from last year to 19.4 million tons in April, down from 23.6 million tons in January 2015.
While METI also estimates that Japan’s crude steel production will total 19.36 million tons in April to June compared to 26.12 million tons.
Contractors like Kajima, Obayashi, Shimizu and Taisei, previously announced record profits during the construction boom period of 2017-2019, supported by the construction of the Tokyo 2020 Olympics.