Strong domestic steel demand may further reduce Japan steel export volumes in the coming months.
According to latest customs data released, Japan flat steel exports which includes 7208 (HR coils /Plates), 7209 (CR coils), 7225 (Electrical sheets),7210/7212(GP/GC) slumped by 10% to 23.17 MnT during Jan-Nov’17 as compared to 25.68 MnT in similar time frame of previous year.
On yearly basis also Japan flat steel exports witness the fall of 5% in Nov’17 to 2.09 MnT against 2.19 MnT in Nov’16.
However nation’s flat steel exports have registered increase of 11% M-o-M in Nov’17 as compared to previous month.In Oct’16 Japan export volumes stood at 2.19 MnT .
Strong domestic demand resulted in falling steel export volumes-According to officials of Japan Iron & steel Federation (JSIF) – “demand from the construction sector is on the rise, while the automobile sector is getting support from the introduction of new cars in domestic markets as well as strong overseas demand”
Also owing to upcoming Tokyo Olympics 2020, domestic steel demand in the country is robust.
The Ministry of Economy, Trade and Industry (METI) has forecasted that exports are expected to decline 2.8% over the period as steelmakers slash exports to prioritize their deliveries to domestic customers.
Japan: Commodity Wise Flat Steel Exports in Nov’17
| Sub Commodity | Nov’17 | Oct’17 | M-o-M (Change in % ) |
Nov’16 (Change in %) |
Y-o-Y |
| HRC/Plate | 1.07 | 1.02 | 4.9 | 1.2 | -10.83 |
| Electrical Steel | 0.53 | 0.43 | 23.25 | 0.50 | 6 |
| Galvanised Steel | 0.25 | 0.24 | 4.16 | 0.25 | 0 |
| CRC | 0.22 | 0.18 | 22.22 | 0.22 | 0 |
| Others | 0.01 | 0.01 | 0 | 0.01 | 0 |
| Grand Total | 2.08 | 1.89 | 11% | 2.19 | -5% |
Quantity in MnT
Source-SteelMint Research
China occupied largest share of Japan flat steel exports in Jan-Nov’17– China was the major flat steel importer of Japan and has occupied the share of 17% which is summed upto 3.82 MnT in Jan-Nov’17.Other major flat steel importing countries from Japan include Thailand which stood at 3.79 MnT (accounted for 16% of share),South Korea at 2.99 MnT (contributes 12.91% of share) followed by Vietnam at 1.78 MnT and Mexico at 1.63 MnT in Jan- Nov’17.
On monthly basis Japan has exported 0.34 MnT of flat steel to China which is slightly up by 3% in Nov’17 from 0.33 MnT in Oct’17.Other major markets for Japan flat steel export are Thailand at 0.40 MnT ,South Korea at 0.27 MnT and Vietnam at 0.19 MnT
However imports to India from Japan continued to remain at 0.08 MnT since last two months.
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