Japan Shipbuilding Steel Consumption Increases by 4.4% in F2009

Steel consumption by Japanese shipbuilders is expected to total 4.83 million tonnes in fiscal 2009 ending in March 2010, which would increase by 4.4% from fiscal 2008 and hit the highest since fiscal 1975, according to Shipbuilders’ Association of Japan. The association announced the previous forecast at 5.257 million tonnes in March. Shipbuilding pace is concerned to slow down when shipbuilders’ new order receipts decreased and delivering date is deferred.

Japanese shipbuilders have order backlogs for 3 years thanks to abundant order receipts until the first half of fiscal 2008. Their orders haven’t been canceled contrary to Chinese and South Korean shipbuilders. Japanese shipbuilders keep high building pace. Meanwhile, new shipbuilding order volume is decreasing by 70-80% from a year earlier since maritime trade price dropped due to economic downturn after last autumn.

Their steel plate consumption is expected to increase by 4.9% to 4.088 million tonnes in fiscal 2009 from fiscal 2008. Shape steel consumption is estimated at 442,894 tonnes. Steel tube consumption would increase by 0.8% to 126,178 tonnes while steel bar increase by 5.8% to 147,739 tonnes. Other steel products would increase by 9.6% to 25,274 tonnes.