Japan Sept steel exports dip 19% on limited availability
...
Japan's steel exports fell by 18.9% on year to about 2.47 million tonnes in September, or the fifth month posting an on-year decline in the aspect, mainly because of lower steel output in general and thus limited supply from the Japanese mills to the overseas market, Mysteel Global understood from the preliminary data released by Japan's Ministry of Finance on October 20.
The September steel export volume was also down 3.9% from August, with Asia remaining the core buyer, and the export volume approximated 2 million tonnes, down 17.3% on year and 1% lower on month, though China, with its exceptionally robust demand, received far more steel from Japan last month, according to the ministry data.
Japan's Sept Steel Exports by Country/Region
| Country/ Region | Volume (000 tonnes) | M-o-M | Y-o-Y |
| ASEAN | 672 | -0.7% | -34.3% |
| China | 585 | -7.3% | +30.8% |
| South Korea | 312 | -14.1% | -36.5% |
Source: Ministry of Finance preliminary trade data
The Japan Iron & Steel Federation will release September's detailed steel exports and imports data by product on October 30, Mysteel Global notes.
Japan's September steel exports were mostly booked in June-July, when demand from China had stayed robust, and inquiries on steel have picked up steadily from Asia starting around July with their restart of economies, but the Japanese mills had to prioritize the domestic demand from the sectors such as the auto sector with their limited output, according to trading sources in Tokyo.
Japan's domestic auto makers have increased their output since July, so has their demand for steel, but "integrated mills still have had their some blast furnaces banked, making them with limited supply to meet the growing demand both at home and abroad, and they had been selective in exporting," a Tokyo-based trader said.
In the near term, Japan's steel exports may stay low even with the recent resumption of some blast furnaces, a second Tokyo trader predicted.
"Domestic auto makers are lifting their auto output fast and mills will be occupied to meet the growing demand from them first and foremost, so they may not have much surplus for exports, and it will have to wait with more banked furnaces back online," he said.
Nippon Steel,Japan's largest integrated mill, plans to restart a furnace by late November at the Kimitsu area of its East Nippon Works, leaving the number of the idled furnaces to four.
As for steel imports, Japan bought 482,033 tonnes of steel from overseas in September, down 23.2% on year but up 9.5% from August, according to the preliminary data.
This article has been published under an article exchange agreement between Mysteel Global and SteelMint.
