Author: Paul Ploumis12 Aug 2014 Last updated at 03:51:29 GMT
TOKYO (Scrap Monster): The latest statistics released by the Japan Iron and Steel Federation (JISF) indicates that the hike in consumption tax with effect from April 1st has not badly affected the country’s steel demand.
Domestic steel products demand fell only by 0.03% in Q2 2014 over the first quarter. In fact, the country’s steel demand increased 4.14% in Q2 over the same quarter in 2013.
According to JISF, steel orders from major sectors including construction posted strong growth during the quarter. A fall in demand was witnessed only in steel purchases by stockists and traders. The demand from construction sector went higher by 184,553 t during Q2, 2.49% higher when compared with the construction sector steel demand during the previous quarter.
The steel demand from automotive sector has increased by 1.41% in Q2 when compared with the previous quarter. The quarter witnessed additional demand of 31,452 t despite being one of the sectors most badly hit by rise in consumption tax. The demand from ship building and marine equipment sector too has increased by 2.36% over the quarter.
On the other hand, orders from market dealers fell 4.9% over the quarter.