Japan?s MHI Considers to Import Steel for Shipbuilding from S. Korea

Mitsubishi Heavy Industries Ltd (MHI), Japan`s third-largest publicly traded shipbuilder is found to be considering ways to import steel for shipbuilding from South Korea. According to Japan’s Nikkei Newspaper on Thursday, a high official from MHI, who held a press conference in Japan, said that if the company fails to conclude price negotiations with Japanese steelmakers, it will consider importing steel from South Korea or China.
MHI mentioned the productions of steel plates for shipbuilding that have begun at the integrated steel mill in Dangjin, South Chungcheong Province of South Korea. The company reportedly said that it will consider importing steel from South Korea after checking the quality of products.
MHI, currently using some of the steel plates from China on a trial basis, is found to have internally concluded that there are few quality defects in foreign-made steel plates.
In such circumstances, there are growing expectations among domestic steelmakers that they will be able to import steel plates for shipbuilding produced in South Korea to Japan. Previously, Japan’s car makers and shipbuilders had struggled in price negotiations with local steelmakers as the steelmakers have raised steel prices even amid slowing demands due to the global economic recession.
Major Japanese steel makers, such as Nippon Steel Corporation, Kobe Steel, Ltd. and JFE Steel Co., stated that as mining giants are increasing the supply prices of raw materials such as iron ore, raising the prices are inevitable, and called for higher prices in the price negotiation with the manufacturers.