Japanese Plate Demand to Reach 3MT for Jan-Mar

Japanese domestic demand for steel plate is expected to reach approximately 3 million tonnes including export for January-March 2010, 80% level compared with the recent peak for April-June 2008. A source of Japanese integrated steel maker estimated the demand seemed at around 2.9 million tonnes for October-December 2009. The demand has rebounded from construction machines and export to South Korea.

Plate demand for domestic consumption decreased to around 1.8 million tonnes for April-June and July-September while increased to 2 million tonnes for October-December. Construction machine makers almost completed inventory adjustment in the first half of fiscal 2009 (April-September 2009). The demand for construction machines is recovering thanks to the export increase to China and Southeast Asia.

Plate demand from shipbuilding hasn’t shrunk largely in fiscal 2009 compared with fiscal 2008, keeping flat or decreasing by a couple of percentage points. Japanese major shipbuilders hold 3-year order backlogs and continue high pace constructions.

A source of Japanese integrated steel maker said plate demand for construction machines seems to sustain 50% within fiscal 2009 compared with the peak level in the first half of fiscal 2008. New order receipts are also low at shipbuilders.

Plate demand has leveled off at a low level from industrial machines, building steel frames and bridges. Especially, for bridges, the demand is expected to decrease to 300,000 tonnes through fiscal 2009 from 400,000 tonnes as initially forecasted.

On the other hand, plate export is likely to keep high in fiscal 2009. The export decreased to 700,000 tonnes for April-June while exceeded 900,000 tonnes for July-September. The demand is expected to increase for UO pipes of energy industry. Japanese plate makers would increase the output mainly for export.