Japanese plate demand for construction machinery is expected to be around 300,000 tonnes in second half of fiscal 2009 ending March 2010, which is more than 40% of the peak in first half of fiscal 2008. An integrated steel maker source said the recovery is still weak but the demand recovers from the bottom in first half of fiscal 2009. The construction machinery demand increases for export to China and Asia while the inventory adjustment is finishing.
Japanese construction machinery shipment units in first half of fiscal 2009 were estimated to be around 60% of the level in same period of fiscal 2008. The plate demand for the machinery was 80% drop in April-June and 70% drop in July-September from same period of 2008. The steel makers’ plate shipment was less than the demand partly due to inventory adjustment. Japanese construction machinery makers almost completed inventory adjustment by September and they increase the production to the demand level in second half of fiscal 2009. The demand is expected to recover for China, India and other developing countries. Japanese plate demand will decrease for building frame and bridge in second half of fiscal 2009. The largest application of shipbuilding is expected to keep firm while the demand could decrease under shrinking new order. Japanese steel makers’ plate export is firm and the makers increase the export rate under slow domestic demand.Japan Steel Scrap Composite Prices (Sangyo Press)
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