Japan Plate Makers Increases Export Price to South Korean Shipbuilders

Japanese integrated steel makers started price negotiation of steel plate with South Korean Shipbuilders for shipment in October-March 2010. Japanese makers are expected to raise the price from the first half of fiscal 2009 thanks to tighten supply and demand in international market. Some makers already offered actual price to shipbuilders. Japanese plate makers are likely to increase the price to around FOB US$ 700 per tonne.

International plate market shrunk mainly for construction machines due to business downturn since last autumn. Japanese plate export price negotiation came to a conclusion at around FOB US$ 700 to South Korean shipbuilders in the first half of fiscal 2009. However, South Korean shipbuilders required the price cut after the conclusion when Chinese plate export price dropped. Japanese plate makers accepted the requirement.

Plate demand is expected to hit the bottom in the last half of fiscal 2009 thanks to increasing Chinese demand for buildings, civil engineering or increasing energy industry for LNG. South Korean and Chinese plate market prices are starting to rise.

South Korean shipbuilders have the works for about 2 and half year. The supply is anticipated to be excess when South Korean plate makers, POSCO, Dongkuk Steel and Hyundai Steel will build up plate mills. South Korean shipbuilders are expected to keep require plate export to Japanese plate makers in the last half of fiscal 2009. Japanese plate makers will more raise the selling price of steel plate thanks to rising international plate steel.