Japan Flat Steel Processing Demand to Rise in F2011

Japanese steel coil centers’ shipment increases by 1.7% to 15.399 million tonnes in fiscal 2011 ending March 2012 from fiscal 2010, according to Japan Coil Center Association. The shipment increases for 3 years in a row. Japanese cut processed plate demand increases by 0.7% to 2.096 million tonnes, according to national shearing association. The flat steel processing demand recovers for the manufacturers.

The coil centers’ shipment increases by 9.3% in second half of fiscal 2011 from same period of fiscal 2010 thanks to higher demand for automobile and construction and industrial machinery. The shipment decreased by 9.4% due to slow demand after the major earthquake.

The coil centers’ shipment recovers in January-March to the level in same period of 2010 when the demand recovers from temporary slowdown caused by Thai flood. The national association expects the inventory adjustment takes more time due to slow export and higher import.

The cut plate demand also improves for construction industry. The demand increases by 6.8% to 550,000 tonnes in January-March from same period of 2010 due to higher demand for bridge and major building construction while the demand decreases by 2.2% to 530,000 tonnes in October-December.

The processors’ plate inventory decreased to around 370,000 tonnes compared with 381,000 tonnes in May. The association expects the stock would decrease to 350,000-360,000 tonnes level toward March 2012 depending on the processors’ reasonable purchase under the demand level.