Japan Shipbuilders Warn Higher Plate Price Encourages Import

Shipbuilders’ Association of Japan’s chairman Takao Motoyama said at press conference major steel makers see shipbuilding steel plate price negotiation will end soon but he indicated shipbuilders still oppose the wide hike offer.

Mr. Motoyama, who is chairman of Mitsui Engineering & Shipbuilding, said the negotiation is individual for each company but he indicated some shipbuilders would use cheaper import plate. He said Japanese shipbuilders have intention to keep using Japanese plate with high quality and performance but the industry could use more import plate depending on the price.

Mr. Motoyama said freight market recovers mainly for bulker and Japanese new shipbuilding order receipt from offshore buyers increased by 86% to 2.16 million compensated gross tons in January-June from same period of 2009. He said the shipbuilding demand started to recover and Japanese shipbuilders will keep high level operation along with the 3-year order backlog.

Mr. Motoyama said the shipbuilding order price level hit bottom earlier the year and started to increase both for tanker and bulker. He expects the price recovery continues and the shipbuilders will get order at profitable price.