RNCOS has released a research report on the Japanese steel market titled, ‘Japan Steel Industry Analysis’.
The report offers forecast analysis on Japan steel market till 2014 and includes the updates in market dynamics. It explains the cause for the slow growth in Japan and its effect on the associated verticals. It also discusses the financial performance of major steel players in the Japanese market.
According to the report, the Japanese crude steel production market achieved nearly 25% growth in 2010 when compared to 2009 due to the revival of demand from local manufacturing industries. East Asia market’s demand on high-grade steel also steered the output to more than 109 Mt.
The recent tsunami and earthquake caused serious damage to industry infrastructure, ports, railways and roads in Japan. The projected cost of reconstruction of infrastructure in the regions affected by tsunami and earthquake is approximately $180 billion, of which steel cost accounts for 10%.
The Ministry of Land, Infrastructure, Transport, and Tourism of the country has demanded firms manufacturing kit homes and emergency housing to augment their production in order to provide accommodation for around 390,000 people affected by natural calamities.
The increase in steel demand will push the demands for raw materials such as coking coal and iron ore. In addition, Japan is a potential market for suppliers of products to the shipping segment, shipbuilding services and technology, advanced marine devices, which will also increase the demand for steel.