Imports of Steel Plates to Decrease by 40-50% for 2H
Japanese plate steel imports is likely to decrease in second half of fiscal 2003 more than expected in first half at 100,000 to 105,000 tonnes. Trading firm sources estimates plate arrival to Japan will be average 10,000 tonnes per month to 50,000 to 60,000 tonnes in second half of the year, representing 40-50% decrease from first half. CSC of Taiwan will completely replace its steel plate mills with 40 days shut down from middle of this month and POSCO of South Korea will also repair no.1 and no.3 plate mills in October. Far countries from Japan are reluctant to sell to cheaper priced Japanese market.

The estimated amount of arrival in the first half of fiscal 2003 is 20-25% of decrease from 133,000 tonnes of previous year.

After the replacement, CSC plans to ship steel plates for domestic shipbuilding and construction dominantly reducing shipment to Japan sharply in fourth quarter and first quarter of next year.

On the other hand, POSCO will also repair the steel plate mills of Pohang Works periodically. Repairing no.1 plate mill with about 530,000 tonnes of annual capacity takes 2 weeks from the middle of this October and that of no.3 plate mill with 1.01 million tonnes of capacity takes around 40 days. The firm will also reduce sharply steel plates for Japan in the fourth quarter.

An importer estimates POSCO ships 13,000 to 15,000 tonnes of plate to Japan in October-December, CSC ships 8,000 to 10,000 tonnes and others ships around 5,000 tonnes totaling Japanese imports the period to 26,000 to 30,000 tonnes.

There is no doubt that Korean and Taiwanese mills will not increase shipment to Japan in January-March 2004 estimated the amount is in line with fourth quarter. Plate import in second half is expected to halve to 50,000 to 60,000 tonnes from first half totaling import in fiscal 2003 to 160,000 tonnes representing around 40% decrease from last year.