Japan’s hot rolled coil exports in the first 9 months (Jan-Sept’21) of CY’21 (9MCY’21) dropped almost 4% to 9.97 million tonnes (mn t) compared to 10.36 mn t seen in the corresponding period last year (CPLY), as per Customs data maintained with SteelMint.
On a m-o-m basis too, exports were a little down, by 1.52% to 1.14 mn t in Sept’21 compared to 1.16 mn t in Aug’21. However, y-o-y exports in Sept’21 were slightly higher by 1.31 compared to 1.12 mn t in Sept’20.
Why are HRC exports down?
Crude steel production is being impacted because of emission cut pledges. Japan too is eying carbon emission reduction which may lead to production cuts. For instance, Nippon Steel’s Q2 crude steel output has dipped as it eyes 30% reduction in carbon emissions by CY’30. JFE’s crude steel output in H1FY’22 of 12.70 mn t was lower than the forecasted 13 mn t.
Against the backdrop of impending production drop, domestic supply is becoming tight which is making mills focus more on the domestic market. Of course, Japan’s iron and steel industry had long before started exploring energy saving concepts and carbon emission reduction with heavy investments since almost five decades back and has the smallest room when it comes to energy saving.
But, Japanese mills are keeping their export prices high and offers on hold in an attempt to serve the domestic market first.
Japan’s steel exports to the USA have dropped since 2018 because of Article 232 of the US Trade Expansion Act, which targets steel and aluminium imports.
Overall, Japan’s exports of HRCs have fluctuated in 9MCY’21.
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