Japan: Ordinary steel orders surge by 4% y-o-y in Oct'23

Ordinary steel orders in Japan for domestic use surged by 4.1% y-o-y to 3.02 mnt in October 2023, reported by Japan Iron and Steel Federation (JISF). This marks the first such increase in four months and points towards a potential recovery in the Japanese steel industry.

Manufacturing and construction sector

The manufacturing sector's orders increased by 6.0% y-o-y to 1.263 million tons (mnt). Automobile demand rose by 12% y-o-y and a nearly 10% y-o-y rise in orders for ships.

On the other hand, the construction industry (building and civil engineering) reported a decline of 2.7% y-o-y to 787,000 tonnes (t). Orders for non-housing construction also fell by 9% y-o-y against previous year, indicating potential challenges in this sector.

Export orders remain subdued

The export orders declined by 6.1% to 1.836 mnt. This decline contributed to the overall volume of orders received, including both domestic and export orders, remaining stable at 4.859 mnt.

Outlook

Domestic orders for ordinary steel products in Japan are mixed. The manufacturing sector is showing signs of recovery. However, the decline in construction orders and falling exports remained concerns.

Note: This article has been written in accordance with an article exchange agreement between Japan Metal Daily and SteelMint.