Japan Ship and Marine Structure Steel Use to Hit Record in F2008

Japanese carbon steel demand is expected to reach 4.397 million tonnes for ship and marine structure in fiscal 2008 starting April 2008, which is the largest volume since fiscal 1976. The demand keeps more than 4 million tonnes for years in a row since fiscal 2005, according to 20 members’ research by Shipbuilders’ Association of Japan. Japanese shipbuilders keep 3-4 years order backlog and they try to expand the output capacity under strong ocean transport market. Their building volume increased by 10.6% to 18.176 million gross ton in fiscal 2006 from fiscal 2005, which increased for 4 years in a row. Their order receipt increased by 3% to 8.54 million compensated gross ton in January-October from same period of 2006, according to Japan Ship Exporters’ Association. The higher activity increases the steel demand. The plate demand for ship and marine structure increases by 3.7% to 3.693 million tonnes in fiscal 2008 from fiscal 2007. The demand increase by 6.4% to 389,574 tonnes for shapes, by 5.1% to 118,248 tonnes for steel pipe and by 7.9% to 186,551 tonnes for steel bar. The steel demand estimated was revised upward to 4.223 million tonnes for fiscal 2007 from original 4.175 million tonnes.