Japan Shipbuilders’ Steel Use to Drop by 9% in F2012

Japanese 19 major shipbuilders’ steel consumption would decrease by 9% to 3.86 million tonnes for shipbuilding and marine structure for fiscal 2012 ending in March 2013 from fiscal 2011, according to Shipbuilders’ Association of Japan. The consumption is 16% lower than recent peak in fiscal 2008. The shipbuilders’ steel consumption will decrease in and after fiscal 2012 when they have only 2 years of order backlog and the order is less than the building volume in recent years.

The consumption would decrease by 9% to 3.36 million tonnes for plate for fiscal 2012 from fiscal 2011. The consumption would decrease by 10% to 290,000 tonnes for sections and by 6% to 80,000 tonnes for pipe. The bar consumption would decrease by 12% to 120,000 tonnes. The plate consumption was more than 3 million tonnes per year since fiscal 2005 but the demand will decrease to less than 3 million tonnes in and after fiscal 2013.

Japanese shipbuilders’ order backlog was 3.42 million gross ton at the end of 2011, according to US based research company, IHS. The backlog decreased to 4.24 million gross ton in 2010 from 5.19 million gross ton in 2009 compared with around 6.3 million gross ton in 2007 and 2008.

Steel makers increased the plate making capacity in Japan and other countries despite decreasing Japanese shipbuilders’ order. One trading firm source sees the plate consumption was very high in recent years compared with annual 2 million tonnes before recent boom.