Japan: Steel exports increase by over 8%, y-o-y, in May

Steel exports by Japanese mills increased by 8.7% y-o-y to 2.99 million tonnes (mnt) in May 2022, as per data released by the Ministry of Finance, Japan. An upward trend in the global market, depreciation of Japanese Yen (JPY) and adjustment of inventory in the domestic market led to the rise in exports last month.

Meanwhile, Japan's exports to European Union (EU) touched an all-time high m-o-m, due to soaring prices amid the Russia-Ukraine crisis.

The international market has slowed down owing to the monsoon season. Asia's hot-rolled coil (HRC) prices remained weak at around $700/t, despite the fall in JPY to about 135 against the US dollar for the first time since 1998.

Major blast furnaces are trying to limit their export contracts for some time due to current market environment and profitability. Nippon Steel has decided not to resume operations at its Nagoya works, as the repair will be completed by the end of this month. Moreover, if the market downtrend continues, then steel exports are likely to fall in Q3CY22.

Country-wise exports

Steel exports to the Association of Southeast Asian Nations (ASEAN) stood at 1.07 mnt (up 15.9%), while export volumes to South Korea rose 40.3% to 462,000 t in May.

Exports to EU rose to 222,000 t versus 212,000 t in May while exports to USA declined by 27.6% to 94,000 t. It is to be noted that USA has implemented tax-free quota for 1.25 mnt of Japanese steel imports from 1 April 2022 under Article 232 of the Trade Expansion Act.

However, exports to China registered a decline of 20.3% y-o-y to 339,000 t due to lockdown in Shanghai.

Japan's steel imports up

Japanese steel imports rose 7.4% to 569,500 t in May. Imports from South Korea, China and ASEAN increased by 1.9% (to 251,000 t), 12.5% (99,000 t) and 13.1% (36,000 t) respectively.

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