Japan Oct finished carbon steel sales dip on less auto use
In October, Japan’s total carbon steel finished steel sales for domestic market declined for the second consecutive month by another 1.3% to 3.17 million tonnes...
In October, Japan's total carbon steel finished steel sales for domestic market declined for the second consecutive month by another 1.3% to 3.17 million tonnes, according to the data released by the Japan Iron & Steel Federation (JISF) on December 16, mainly due to less consumption by the auto sector on the shortage of auto components since August, market sources commented.
Japan's domestic sales in October was also 5.3% lower on year, though the monthly volume for exports jumped by 21.2% on year and 19% higher on month. Over January-October, the country's total carbon steel finished steel sales including domestic market and exports approximated 50.54 million tonnes, 9% higher on month, Mysteel Global calculated based on the official data.
A steel trader in Tokyo attributed the exports rise in October to the fact that steel producers had more availability to allocate products for export while domestic demand was declining.
"But the drop in domestic sales is expected to be just temporary, as automakers will resume their normal operations by the end of December or early January and their steel consumption will pick up. By then, Japanese mills will reduce their exports to prioritize domestic supply," he said.
Japan's Oct finished carbon steel sales breakdowns (incomplete)
Source: JISF
In October, Japan's HRC sales both at home and exports approximated 1.69 million tonnes, up 12.1% on year and 13.3% higher on month, with the product being the top export item, and the second bestselling product was heavy plate, with the total sales at 789,947 tonnes, up 15.5% on year though down 0.5% on month.
"More overseas customers bought HRCs, and the rise in heavy plate sales was largely due to firm demand from the machinery sector. And stronger demand from shipbuilders is expected to further lift the plate sales in the coming months," a second trader in Tokyo said.
Written by Yoko Manabe, yoko.manabe@mysteel.com
This article has been published under an article exchange agreement between Mysteel Global and SteelMint.
