Demand for grain oriented (GO) electrical steel sheet shows a recovery sign. The demand for distribution transformer is recently increasing by 10-20% compared with a year ago along the capital expenditure recovery by US and European companies, according to a transformer maker. Demand for large-size power transformer maintains weak. But the demand is expected to rebound within this year due to many nuclear power plant projects in UAE, India, Vietnam and other countries.
Market demand for GO electrical steel downturned when many electric power development projects were suspended or postponed after Lehman Shock and transformer demand sharply shrank at the end of 2009. In China, a country with the world largest demand, local steel makers entered GO electrical steel market and the number of transformer makers increased. As a result, market competition got severer. The demand currently shows a recovery sign in USA and Europe where economic upturn is relatively delayed compared with emerging countries. Demand for distribution transformer used in manufacturing factories seems increasing when productions of automobiles, electric appliances and machines are slightly increasing. Power transformer demand is also expected to rebound especially for nuclear power plants. Total 66 nuclear power plants are under construction now in 15 countries and total 74 nuclear power plants are under planning in 18 countries, according to Japan Atomic Industrial Forum.Japan Steel Scrap Composite Prices (Sangyo Press)
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