Japan's ordinary steel orders decline y-o-y in June: JSF

Japan Metal Daily: Japan's ordinary steel product orders had fallen significantly in June 2024 by 9.8% y-o-y to 2.681 million tonnes (mnt) as per Japan Steel Federation (JSF). This marks the second consecutive month of falling orders, indicating a slowdown in demand across various sectors.

Exports decline for fifth consecutive month

Exports to the manufacturing industry continued their downtrend, registering a decline of 8.7% y-o-y to 1.141 mnt. This marks the fifth consecutive month of decrease. Automobiles witnessed a sharper decline, dropping by 10.4% y-o-y to 538,000 tonnes (t). Other major sectors such as industrial machinery, electrical machinery, and ships also experienced decreases. However, containers showed a growth of 6.4% y-o-y to 58,000 t.

Production for construction slows down

The production in the construction and civil engineering sectors decreased by 6.7% y-o-y to 689,000 tonnes (t). Meanwhile, civil engineering production saw a slight increase, the sales for construction, including both residential and non-residential projects, experienced significant declines. Sales to dealers, which represent approximately 70% of the construction production, also slowed down by 8.7% to 852,000 t.

Export orders fall amid sluggish demand

Export orders for steel products declined by 12.2% y-o-y, totalling 1.789 mnt. Overall orders received in Japan and exports also fell, contracting by 10.8% y-o-y to 4.47 mnt. The ongoing weakness in demand for steel products, both domestically and internationally, continues to be a significant challenge for the industry.

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