Firm World Demand for Grain Oriented Electrical Steel in F2009

World demand of grain oriented electrical steel is still firm due to higher energy demand and infrastructure investment in developing countries despite of the worldwide slump for steel demand. Nippon Steel and JFE Steel run the grain oriented electrical steel making lines at full capacity. The makers expect the demand would keep firm in fiscal 2009 started April.

The demand is expected to increase fro high grade grain oriented electrical steel due to the performance to improve the energy saving and carbon dioxide emission control. International Energy Agency (IEA) expects primary energy demand will increase by around 66% to 15.27 billion tonnes of oil equivalent in 2030 from 2000 level. The higher energy demand and environmental action could increase the high grade grain oriented electrical steel demand.

Grain oriented electrical steel demand is estimated to be more than 2 million tonnes in the world. Japanese 2 major steel makers are dominated suppliers mainly for high grade products while POSCO, Wuhan Steel, AK Steel and ThyssenKrupp Steel provide the products.