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| Japanese Integrateds In Difficult Situation For Spot Heavy Plate Exports |
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Japanese integrated steelmakers find it difficult to meet enhanced inquiries from abroad in heavy plate exports out of Japan because they have no leeway to take up spot deals of heavy plate exports. As a result, they have no option but to give up those deals one after another. Of late, the Japanese steelmakers have seen many heavy plate inquiries from the Middle East where a spate of large-scale construction projects are under way. The inquiries call for heavy plates to produce box columns. The Japanese steelmakers are supposed to provide sufficient amounts of ship plates (heavy plates for shipbuilding) for various shipyards both in South Korea and Japan. Also, they need to allocate heavy plates to the Haneda-Oki development project in the Tokyo Bay area. As a result, it is considered impossible for them to meet heavy plate inquiries from construction projects abroad. The Japanese steelmakers have just concluded their ship plate export negotiations with South Korea's major shipbuilding companies for shipments in April-September 2007 or in April 2007-March 2008. But the Japanese steelmakers have many cases of unsettled ship plate deals with South Korea's small and midsize shipbuilding companies that have made inquiries to the Japanese steelmakers day after day until now. The major Korean shipbuilding companies have already secured ship plates to meet what they require for one year. There are signs, though, that some small and midsize Korean shipyards have yet to cover their ship plate requirements even for the April-June quarter. As to heavy plate demand for construction, it is perking up in eastern Europe and Southeast Asia besides the Middle East. It is Chinese steel mills that represent a main source of heavy plate exports to the three destinations so far, according to market sources. As a result, there are forecasts that the world's supply-demand conditions for heavy plates will become tighter if China's heavy plate exports decrease due to factors such as a reduction of the Chinese export tax rebates. |
| last modified : Tue 03 Apr, 2007 [10:59] |
