Japan Plate Steel Demand Keeps Rising through 1H F2010

Japanese plate steel demand is expected to keep increasing slightly in April-September 2010 when the demand keeps firm for shipbuilders and gradually recovers for construction and industrial machinery, according to Japanese integrated steel maker source. The export demand will increase for energy industry along with South Korean shipbuilders. Japanese plate demand recovers around 6 million tonnes in the first half of fiscal 2010 starting April after the demand recovers more than 5.5 million tonnes in second half of fiscal 2009 compared with around 5.3 million tonnes in first half of fiscal 2009, around 6.3 million tonnes in second half of fiscal 2008 and around 7 million tonnes in first half of fiscal 2008. The plate demand is estimated to be 4.7-4.8 million tonnes for shipbuilding in fiscal 2009. The demand is lower than around 5 million tonnes in fiscal 2008 but relative high level. The demand is expected to keep the level through first half of fiscal 2010 when the domestic shipbuilders keep 2-3 years of order backlog. The construction machinery plate demand increases for Asian infrastructure development after the inventory adjustment by first half of fiscal 2009. The industrial machinery plate demand hit bottom in fiscal 2009 and increases slightly in fiscal 2010. The building plate demand is stable for major building projects while the demand is low level for general steel structural building and steel bridge. The plate export demand keeps around monthly 300,000 tonnes since middle of fiscal 2009. The destination is mainly for South Korean shipbuilders. However, plate supply increases in South Korea and China in 2010 while the demand could decrease. The potential oversupply is likely to be canceled by higher demand for large diameter pipe of pipeline.