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Japanese Construction Industry is in Shortage of High-Tension Bolt

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2018-12-11

The Japanese construction industry now faces a problem of insufficient high-tension bolts. As Tokyo Olympics infrastructure cosntruction and urban development are underway, the industry is coming short of special steel wires, the production of which is far behind its demand and its price has risen 10% in the last 6 months. The industry is concerned that the shortage of the bolts could undermine the rising construction demand.

But how is it that there is not enough high-tension bolts? The reason could be the limited number of suppliers. The main makers of these bolts are NIPPON STEEL & SUMIKIN Bolten Corporation and NIPPON Fastener Corporation among other Japanese suppliers. The economic crisis in 2008 led to decrease in demand which shrank Japan's domestic capacity. "Bolt makers have gradually reduced the purchase of special steel wires which are the material for high-tension bolts, " said a local steel trader.

The purchase price for high-tension bolts is JPN 280,000 per ton, up JPN30,000 from spring 2018. The price has risen but it is difficult to switch source of purchase. A high-tension bolt local distributor said, "We are most likely to see a new batch of the bolts coming in from the makers near the end of 2018. Currently our plate is pretty much full by just supplying to regular customers." Construction cannot proceed if there is not enough contruction bolts. The tiny bolts are stirring hefty concerns across the Japanese construction industry.

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