Japan Shipbuilding to Hit Record

Japanese shipbuilders are expected to increase the output to record more than 18 million gross ton for 2006. The output is expected to increase by 16.8% to 9.28 gross ton in January-June from same period of 2005 under the firm demand for maritime traffic, according to Corporation of Lloyd’s. The output is expected to increase by more than 1 million gross ton in 2006 from record 16.99 gross ton in 1775. Maritime traffic increases under China and BRICs economy growth. Japanese shipbuilders increase the output and order received. Japanese shipbuilders operate at full capacity under the boom. They keep 3 years of order backlog and some keep 5 years of order. The order increased since 2003 and keeps increasing. Japanese shipbuilders’ output decreased to 4.04 million gross ton in 1988. However, the output hit 16.43 million gross ton in2005, which was third high. Japanese shipbuilders got 9.28 gross ton of order in January-June. Their output could reach 18.31 million gross ton in 2006 based on order backlog of them for July-December. Their order backlog is 16.65 million gross ton in 2007 and 29.56 million gross ton in 2008. Shipbuilders’ Association of Japan reported the members’ steel consumption will be 4.04 million tonnes in fiscal 2006 ending March 2007 including 3.44 million tonnes of plate, 320,000 tonnes of shapes, 100,000 tonnes of pipe and 170,000 tonnes of bar. The consumption could increase more when the shipbuilding volume increases.