Higher Shipbuilding Demand and Plate Steel Consumption in Japan

Shipbuilding application increased the portion in Japanese plate steel demand in 2005. Domestic plate output increased by 7.5% to 11.96 million tonnes in 2005, according to Japan Iron and Steel Federation. Shipbuilders Association of Japan reported the plate consumption by shipbuilders increased by 17.1% 3.5 million tonnes. The shipbuilding application increased from 26.8% in 2004 to 29.2% in 2005. The portion increased to near 30% compared with 27.4% in 2002 and 26.5% in 2003. Japanese plate demand is firm for energy industry and construction and industrial machinery while the demand is slow for bridge and building. Domestic plate makers increased the output by 3 million tonnes in 4 years to meet higher demand. The vessel demand surges under higher international transport and Chinese growth lifting shipbuilding. The higher shipbuilding increases steel demand by 1 million tonnes for domestic plate steel in 4 years. The shipbuilding portion could increase to more than 30% of domestic plate consumption when shipbuilders’ activity is expected to keep high level while domestic plate output capacity is near full.