Japan: Steel exports edge up y-o-y in FY'23

Japanese steel exports in FY'23 (1 April to 31 March) edged up on y-o-y basis to 32.077 million tonnes (mnt) compared to the previous year, marking the first increase in two years, as per data released by the Ministry of Finance on 17 April 2024.

Yen's depreciation

The yen had hit a new low against the dollar, reaching around JPY 140 for every dollar. This is the second-weakest yen on record, following last year's depreciation. However, the Asian steel market remains sluggish due to surge in Chinese steel exports. Despite high costs for raw materials, steelmakers are struggling to make profits as export prices keep falling in dollar terms.

The weakening yen (currently around JPY 154 to the dollar) is not expected to boost Japanese steel exports in FY'24. High competition from China, Southeast Asia, and India is expected to keep exports in the low 30-mnt range. Trade issues and ongoing industrial restructuring in Japan are further dampening the outlook. It may be mentioned that half of Japanese firms are looking at reviewing or restructuring their businesses in efforts to boost corporate value.

Export volumes by country

• Exports to the European Union (EU) reached a new annual high, exceeding the previous year's figures. The same rose to 1.926 mnt.
  
  
• Asia's share of exports dipped below 70% for the first time in a century, dropping 4.5 percentage points from the previous year.
  
  
• China saw a significant y-o-y decline with annual exports falling below 3 mnt to 2.8 mnt for the first time this century.
  
  
• ASEAN and South Korea also experienced decline in exports to 10.145 and 5.398 mnt, respectively.
  
  
• Exports to the United States (US) declined to 1.154 mnt.
  
  
• In contrast, exports to the Middle East surged reaching 963,000 tonnes (t).
  
  

Note: This article has been written in accordance with a content exchange agreement between Japan Metal Daily and BigMint.