Japan Steel Plate Supply to Get Tighter

Plate market price is 80,000 yen per tonne for standard size plate with 19 millimeters thick, 5 feet width and 10 feet length around Tokyo. The price is 95,000-100,000 yen per tonne for cut processed plate. The supply is getting tighter when the demand increases for bridge and building since July along with firm activity in shipbuilders and construction and industrial machinery makers. The price is expected to increase when the supply could be very tight after autumn. The shipbuilding demand, which represents near 50% of plate demand, is expected to keep firm in years when shipbuilders have more than 3 years of order backlog. The construction machinery demand has kept increasing for 45 months to June when the shipment increased by 21.4% from a year earlier. The plate inventory held by shearing processors decreased by 2.9% to 460,491 tonnes at the end of June from May, according to Japan Plate Shearing Industrial Guild. The stock is the lowest level in a year after the inventory adjustment. Some interests expect the plate supply could be shortage. Integrated steel makers seek 5,000 yen per tonne hike for shipbuilding plate for October shipment under the negotiation. Chubu Steel Plate expects the plate price could keep the level due to higher international price though the firm expected the price would decrease to 70,200 yen per tonne in fiscal 2006 started April from 72,400 yen in fiscal 2005.