Steel consumption for ship to increase by FY 2009

Carbon steel consumption for shipbuilding and marine structure is expected to increase by 6.9% to 4.91 million tonnes in fiscal year 2009 ending March 2010 compared with FY 2008 consumption estimate, which represents increase for 3 consecutive years in a row, according to the survey by Shipbuilders’ Association of Japan.

The association’s steel consumption estimate is 4.59 million tonnes for FY 2008 and is 4.91 million tonnes for FY 2009. Steel consumption of Japanese shipbuilders would expand when they increase amount of shipbuilding.

The amount of export ship order volume in January-August increased by 17.5% to 15.83 million gross tons from same period last year, according to Japan Ship Exporter’s Association. Shipping market grew when the demand for material and energy expanded for developing countries such as China. The demand is increasing for new ship, which complies with environmental regulation. It also made order increase.

The domestic shipbuilders begin to pick the order avoiding decline in profits from cost increase of steel products and other raw materials. Meanwhile, shipbuilders’ work in progress for export is 69.98 gross tons at the end of August. Shipbuilders have 4 year’s work. Shipbuilding is likely to increase for immediate future. The steel consumption would also keep higher level.

The steel consumption for FY 2009 is expected to increase to 4.12 million tonnes by 7.4% for plate from 2008, 440,000 tonnes by 4.4% for section, 130,000 tonnes by 2.05 for pipe and 170,000 tonnes by 7.5% for bar.