Tokyo Steel to Expand Plate Steel Output

Tokyo Steel Manufacturing increases the plate steel output to monthly 30,000 tonnes level in December from current 20,000-25,000 tonnes by increasing the shift from current 2 to 3 shifts operation. The firm tries to expand the sales to meet strong demand from offshore buyers when the worldwide plate supply gets tighter under strong demand for shipbuilding and energy industry. The firm started plate output in January after the building of new caster and mill at Kyushu plant. The firm increased the output from initial several thousand tonnes. The firm started direct sales from inventories at Kyushu plant and Yokohama warehouse in June. The firm got authorization to make shipbuilding grade plate for Nippon Kaiji Kyokai (NK), American Bureau of Shipping (AB), Lloyds Register of Shipping (LR), Det Norske Veritas (NV) and Korean Register of Shipping (KR). The firm increases the plate sales for offshore buyers for shipbuilding, building and machinery application in East Asia, Southeast Asia, Middle East and Europe while the domestic sales is slower due to higher 83,000 yen per tonne of selling price than other makers and lower building demand under transition phase to new building standard. Worldwide plate supply is very tight under the strong demand for shipbuilding and energy industry along with industrial and construction machinery. Japanese integrated steel makers also expand the output through conversion of existing lines. However, the domestic supply cannot meet strong demand. Tokyo Steel tries to expand the plate sales.