World Magnetic Steel Sheet Supply Keeps Tight in 2008

Global supply of magnetic steel sheet is expected to keep tight in fiscal 2008 starting April when the demand for energy industry would expand mainly in developing countries. Japanese makers are receiving a lot of orders for directional magnetic steel sheets applied to electric power plants or electric transmissions.World energy demand seems to increase to 15.27 billion TOE (ton oil equivalence) in 2030, up by about 66% from 2000, according to IEA. The demand would increase by average 1% per year in advanced countries for 30 years while by 2.9% per year in developing countries, mainly Asian countries.Global demand for directional magnetic steel sheet is estimated at about 2 million tonnes per year, which is increasing for electric dynamo or transmission due to activization of electric power development. Japanese maker source said the demand would continue increasing for a while. On the other hand, makers’ output capacity is limited and the supply would become even tighter.Demand for non-directional magnetic steel sheet, which is applied to motors and compressors in home appliances, keeps steady mainly in China such for air conditioners where housing starts are active. Japanese maker source said Chinese consumption of non-directional magnetic steel sheet is increasing by average 10% per annum, exceeding the capacity expansion by steel makers including China Steel in Taiwan.