Japan Steel Plate Supply and Demand to tighten

The supply and demand for Japanese steel plate is expected to be tighter in January-March 2007 when the demand for shipbuilding, construction machinery and industrial machinery keeps strong and for bridge and building is recovering. Japanese steel makers are increasing their production by such as the improvement of their line. However, they are continuing full operation. Their spare productive capacity is limited. Japanese integrated steel makers keeps cautious production stance with a view to cutting an order with the supply and demand condition. Dealers keeps sales stance with the tight of the supply and demand. The market price of steel plate is expected to be strong from the beginning of 2007. Japanese steel plate production decreased to about 5.91 million tonnes by 1.7% in April-September 2006 from the same period of last year when the steel makers reduced their production for the inventory adjustment in spring 2006. However, it is certain that the production would exceed 10 million tonnes in fiscal 2006 at ended of March for 3 consecutive years when Japanese shipbuilding would renew highest in fiscal 2006 and the demand for construction machinery and industrial machinery. Domestic plate inventory is expected to decrease by 5.0% to 440,000 tonnes at the end of March from a year ago, which would be 160% of shipment, according to Japan Steel Plate Shearing Industrial Guild. Japanese steel plate processors will raise their selling price with the good demand and the advancing of the inventory adjustment.