TEX reported that Japan's integrated steelmakers find themselves in active export deals of high grade heavy plates for energy related applications such as jackets, oil or gas storage tanks, and oil refinery tanks at a time when national oil companies and gas authorities in the world's emerging economies are poised to resume their energy development plans. Major Western oil companies, though, still remain cautious about outlays in new energy development projects.
Inquiries for high grade heavy plates from Japan have hit twice the level of last year so far, with a required quantity of 5,000 to 6,000 tonnes each. The inquirers are Japan's and South Korea's engineering companies aiming to win contracts for construction of new energy-related facilities in the emerging economies. Designers in charge set Japan and Europe as the sources of high grade heavy plates, a condition that precludes offers of heavy plates from China.
Accordingly, it is considered possible for the Japanese steelmakers to maintain relatively stable prices in negotiations on their exports of high-grade heavy plates to the emerging economies. As to commodity-grade heavy plates, various steelmakers in South Korea, China and India are likely to seek separate export deals, according to market sources.
At present, pipe supply deals are under negotiation concerning new gas or oil pipeline projects in Australia, the Middle East, Vietnam, and China. In this connection, negotiations are perking up, too, on assignments to take up construction of new storage tanks. For delivery in China, a Japanese integrated steelmaker recently negotiated an export deal of heavy plates for tank material.
Meanwhile, Japan's heavy plate exports continue favorable, mainly for supplies to South Korea's shipbuilding companies. Japanese heavy plate exports are forecast to become stable in quantity once they include high grade products for energy related use. Besides, Japanese export prices of heavy plates are unlikely to fall steeply in the future because the Japanese steelmakers see no need so far for an entry into the field of commodity grade heavy plates.
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