Supply and demand balance of steel plate is expected to keep tight in Japan during January-March 2009. The demand is decreasing from construction and industrial machineries while the demand could maintain the high level from shipbuilding, large building or bridge constructions next year.
Japanese integrated steel maker source said their plate mill keeps full operation. The demand for January-March 2009 is forecasted at around 2.8 million tonnes, almost as same as October-December 2008, and the demand through fiscal 2008 (Apr08-Mar09) is estimated at 11 million tonnes, increasing slightly from fiscal 2007. However, the demand after April 2009 is unclear from shipbuilding or large building projects. Japanese integrated steel maker source said Japanese shipbuilders hold the building volume for around 4 years when they received many orders during 2006-2007. Shipbuilding order volume decreased by 93.9% to 572,000 gross tonnes in October from a year earlier and by 79.7% to 529,000 gross tonnes in November, according to Japan Shipbuilder Association. Japanese manufacturing industry is reducing the investment. Construction schedules of their plants are delayed. Construction machinery and industrial machinery makers are decreasing the output widely due to the business downturn. Especially, construction machinery output is decreasing by about 20% after August from a year earlier. Plate demand from wholesalers is also decreasing after October.Japan Steel Scrap Composite Prices (Sangyo Press)
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