Japan: Steel orders remain range-bound in Apr'24

Steel orders in Japan for April 2024 declined slightly y-o-y, according to data released in mid-May by the Japan Iron and Steel Federation (JISF). This marks the second consecutive month of lower orders compared to the previous year. However, the decline was modest at 0.7% y-o-y, with total orders reaching 2.88 million tonnes (mnt). The decrease is attributed to slow growth in both the construction and manufacturing sectors.

Decline in manufacturing orders

Domestic manufacturing demand has declined for a third straight month, falling 5.2% y-o-y to 1.165 mnt. This decline is reflected in several areas, including a roughly 5% decrease in auto sales and lower production of industrial machinery and ships.

Construction sector slowdown

There was a 2.5% y-o-y decrease in construction steel production, bringing the total down to 733,000 tonnes (t). The main downstream area of construction and non-residential buildings saw a significant drop of 9.6% y-o-y to 292,000 t compared to last year. However, sales to dealers, which make up around 70% of construction steel, increased by 6.9% to 288,000 t.

Rise in exports

Orders for exports increased by 5.5% y-o-y to 2.148 mnt. When combined with domestic orders, the total order volume for April 2024 reached 5.029 mnt, representing a 1.9% y-o-y rise. This suggests potential restocking by dealers in anticipation of future demand.

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