Japan Steel Plate Demand Decreases for Apr-Sep

Japanese integrated steel makers forecast domestic plate steel demand may decrease to 4-4.5 million tonnes for April-September despite of an initial prediction at 5 million tonnes. Demand recovery is delayed from construction and industrial machines beyond makers’ expectation. Order receipts for shipbuilding are also decreasing.

Domestic plate order receipts became below 700,000 tonnes in February and stayed at the level by April, lower by 30% year-to-year. Japanese integrated steel maker source said demand recovery is much delayed.

Japanese shipbuilders have order backlogs for about 3 years ahead but their new order award volume is decreasing by 80% from a year earlier. Shipbuilding industry is likely to slow down.

Domestic steel frame demand was less than 400,000 tonnes in April. Large building plans are postponed and reviewed. Makers’ plate sales volume is decreasing for distributors and shearing processors.

Japanese plat export is getting more competitive when overseas plate mills are expanding the production capacity and shipbuilding demand is declining in the world.

Japanese plate makers will continue output adjustment along the market demand level.