Japan: Steel exports decline y-o-y in June due to sluggish demand

In June 2023, the Ministry of Finance, Japan released trade statistics showing an 8.5% y-o-y decline in steel exports, totalling 2.804 million tonnes (mnt). This marks the first decline in two months and is mainly due to sluggish demand in the Asian market. Specifically, exports to ASEAN fell 10.3% to 886,000 tonnes (t), China fell 31.9% to 216,000 t, and South Korea fell 10.8% to 500,000 t.

Export volumes to EU markets recover
On the other hand, exports to the EU increased by 43.1% to 240,000 t, reaching the second-highest level in the month. However, the hot rolled coil market in Europe has recently experienced a price drop, falling below 700 euros per tonne for the first time in about seven months. This has narrowed the price difference with the Asian market, and it is expected to slow down further due to the onset of vacation during a period of low demand.

Decline in other regions
Steel exports to the US fell 50.2% y-o-y to 83,000 t, while exports to the Middle East fell 4.9% to 70,000 t.

Steel imports also decline
Steel imports also experienced a decline, falling 9.4% to 577,000 t. Imports from South Korea increased by 18.2% to 306,000 t, while imports from China decreased by 17.1% to 99,000 t. Imports from ASEAN, on the other hand, increased by 9.4% to 36,000 t.

H1CY23 performance
For the first half of the year, steel exports fell 1.8% y-o-y to 16.463 mnt. This has been the trend for the past five years, with export volumes remaining around 16 mnt. Notable declines were seen in sales to ASEAN (down 4.4% to 5.27 mnt), South Korea (down 6.3% to 3.072 mnt), China (down 34.6% to 1.372 mnt), the EU (1.092 mnt), the US (down 9.5% to 564,000 t), and the Middle East (down 13.2% to 381,000 t).

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