Domestic plate makers’ lead time from order to shipment extended to 60 days for shearing processors compared with 30-40 days in 2-3 months ago. The makers’ rolling schedule is getting tighter when they are busy to export mainly for South Korean shipbuilders resulting in delay for domestic processors. The lead time is likely to get longer in October-December when some integrated steel plan maintenance. The domestic plate makers operate the mills at near full capacity. They produced 967,000 tonnes in June and produce monthly 0.95-1 million tonnes in and after July. They increase export. The plate export is estimated to be around 200,000 tonnes per month in and after July after the export increased to 230,000 tonnes in June and 189,000 tonnes in May from 124,000 tonnes in April. The Japanese makers try to meet higher demand from South Korean shipbuilders though the plate makers reduced the FOB export price by US$ 100 per tonne for April-September shipment. Domestic shearing processors are suffered from the tight supply. The lead time extended from 30-40 days to 60 days for steel structure or SS grades and is flat at 90 days for heat treated plate. The lead time is expected to be longer. The domestic building demand will increase toward autumn while the demand is firm for shipbuilding and construction and industrial machinery and bridge demand recovers. The supply could get tighter in October-December when plate makers plan maintenance.
Japan Steel Scrap Composite Prices (Sangyo Press)
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