Japan Plate Supply Becomes Tighter in 2H of F2009

Japanese steel plate supply and demand is expected to be tighter in October 2008-March 2009. Japanese integrated steel maker source said domestic demand is expected to increase by 3-4% for mainly shipbuilding and construction machinery in October 2008-March 2009 from April-September 2008, which is expected to reach about 6 million tonnes in fiscal 2008 at the ended of March 2009. Japanese steel plate makers keep the supply in the last half of fiscal 2008 compared with the first half of fiscal 2008, which is unable to response users’ requirement for increased supply. Japanese steel plate supply volume was about 2.89 million tonnes in April-June, which is expected to be about 5.8 billion tonnes in April-September. Users are seemed to request the supply at about 6 million tonnes to makers. Makers couldn’t comply with users’ requirement. The demand for shipbuilding is seemed to be about 2.5 billion tonnes in April-September, which is expected to increase to about 2.65 million tonnes in October-March 2009 when marine industry keeps strong condition thanks to the expansion of energy and resource demand in developing countries. The demand for construction machinery increased to about 650,000 tonnes by 50,000 tonnes in October-March 2009 from the first half of fiscal 2008 when developing countries are continuing to need the resource. The demand for bridge and steel frame is expected to be same level in the last half of fiscal 2008 from the first half of the first half of fiscal 2008. Plate makers plan to increase the production for users’ requirement. JFE Steel introduces one heat furnace in Fukuyama area of West Japan iron works, which starts the operation in December. Nippon Steel introduces rolling mill and cut line, which starts the operation in next summer. However, the makers’ supply is expected to decrease by these works at a temporary. The supply and demand is likely to keep being tight until the starting of these enhancements in next fiscal year.