Japan net importer of met coke in CY'21, coking coal imports rise 8%

Japan recorded metallurgical (met) coke imports at 2.25 mnt in CY'21, thus, becoming the net importer of the material. The country's imports increased substantially in CY'21 against 0.39 mnt seen in CY'20 as the major met coke producer and supplier, Nippon Steel, temporarily suspended some of the coke ovens at its Kimitsu plant for two years, leading to shortage in the domestic market. This led steelmakers to increase their reliance on imports to meet their coke requirement.

China was the largest met coke supplier to Japan, accounting for 90-95% share in the latter's total imports.

Coking coal imports up 8%

Japan's coking coal imports in CY'21 rose by 8% y-o-y to 42.9 mnt amid an increase in the country's crude steel output. According to the Japan Iron and Steel Federation (JISF), the country's crude steel output rose by 15.8% on the year to 96 mnt in CY'21. The ease in Covid-related restrictions and the vaccination drive had promoted domestic economic activities leading to increased steel demand in Japan.

Despite supply challenges, Australia remained the largest coking coal exporter to Japan. In CY'21, the latter's imports share from Australia increased sharply to 71% which was 63% in CY'20.

The other major coking coal exporters were Canada and USA.

Outlook

Japan will continue importing met coke as Nippon Steel's coke oven plants are expected to remain shut for at least the next two years.

On the other hand, the country's coking coal imports this year are expected to remain stable as the country's apparent steel use is forecast to reach 59.2 mnt this year, up 2.1% from a forecast of 58 mnt in CY'21 and 52.6 mnt in CY'20, according to the Japan Iron and Steel Federation (JISF).