Japanese plate steel supply is expected to get tighter in July-September when the demand increases for major building construction in urban areas along with the firm demand for shipbuilding and construction machinery. South Korean shipbuilders demand more plate from Japanese integrated steel makers. The firm demand could result in longer lead time from Japanese plate makers. The makers try to select the order to accept depending on the market condition when they cannot meet all the demand at full capacity.
The domestic shipbuilding demand is expected to keep the high level when Japanese shipbuilders keep more than 3 years order backlog. The shipbuilders could use more plate steel when they expand the building capacity. The domestic plate demand for construction machinery also keeps high due to firm demand for mining machinery and construction crane while they also expand the output capacity. The domestic plate demand is also expected to increase for UOE steel pipe and other processors while the demand is likely to keep firm for heavy electric machinery and plant. The domestic plate demand for building was slower in April-June due to revision of building standard law. However, the pending building projects are expected to start in and after July. Plate processor sources said the major steel structural fabricators would secure the order backlog at least for the year. Haneda airport expansion, which is expected to use 400,000 tonnes of steel products, could lift the plate demand for domestic steel makers.Japan Steel Scrap Composite Prices (Sangyo Press)
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