Japan's steel exports fall by 5% y-o-y amid slow global market sentiments

Japan Metal Daily: Japan's steel exports fell by 5% y-o-y to 2.63 million tonnes (mnt) in August 2024 against 2.77 mnt in the same period last year. Moreover, the same inched down by 1% m-o-m against 2.65 mnt in July 2024. The export decline is attributed to a combination of sluggish overseas demand and trade restrictions.

The European Union (EU) emerged as a particular challenge for Japanese steel exporters, with shipments declining by 70% due to a concentration of shipments in the previous month and the EU's recent initiation of an anti-dumping investigation against hot-rolled coils (HRC) imported from four countries, including Japan.

While exports to ASEAN remained relatively stable at 965,000 tonnes (t), shipments to South Korea and China experienced significant drops. South Korea fell by 16% to 357,000 t, marking the eleventh consecutive month of y-o-y decline. China's production fell by 13.5% to 195,000 t, the lowest level since January 2023.

Outside of Asia, exports to the U.S. decreased by 19.5% y-o-y to 73,000 t, the Middle East sharply dropped by 42.7% y-o-y to 63,000 t, and exports to the EU plunged by 70% y-o-y to 53,000 t.

In August, the European Commission began an anti-dumping investigation on HRC imported from four countries including Japan, making it difficult to export steel to the EU for HRCs

Steel imports fell by 16.2% y-o-y to 526,000 t in August, the first decline in five months. For the first time in five months, it fell below 600,000 t. This year, two typhoons made landfall in August, which may have affected cargo handling.

By country, South Korea went down by 27.8% y-o-y to 237,000 t, China dropped by 9.9% to 91,000 t, and ASEAN fell by 3.2% to 44,000 t.

Outlook:

The overall outlook for Japan's steel exports remains cautious, with the global market facing challenges such as sluggish demand and trade protectionism. The country will need to adapt to these changing conditions to maintain its competitiveness.

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