Japan Steel Exports Drop in January 2019

Japan is the third-largest steel exporter in the world. In 2018, Japan exported 32.28 MnT of steel — an 4.35 percent decline from 33.75 MnT in 2017. Japan’s Steel production represented about 6% of all steel produced globally in 2018. The volume of Japan’s 2018 steel production was around 11% as against China, the world’s largest producer & exporter.

In 2018, Japan majorly exported Semi finished (billet) to Taiwan at around 47.52%, Finished long to South Korea 32.54% & Finished Flat to China 16.73%. In line Finish long & Flat stainless steel to Thailand at 22.96% & China 19.55%. Further, South Korea & United States topped the list, who majorly imports Graphite electrode from Japan.

Japan has recorded marginal drop in Billet exports by 2% in Jan’19 and stood at 0.15 MnT as compare to previous month at 0.24 MnT (Dec’18). Meanwhile, billet export significant fall by 46% on Y-o-Y basis and stood at 0.28 MnT (Jan’18).

Japanese Billet exports to Taiwan fall 60% M-o-M & stood at 0.05 MnT in Jan’19 as against 0.12 in Dec’18.

As per market report, Japan’s steel demand is active from automakers and construction sectors, which is busy with projects for the 2020 Tokyo Olympics.

Japan Flat steel exports down by 11% in Jan’19- On monthly basis Japan flat steel exports registered a fall of 10.6% to 1.86 MnT in Jan’19 against 2.08 MnT in Dec’18. Whereas on yearly basis the same plunged by 18.4% in Jan’19 compared to 2.28 MnT in Jan’18.

Japanese mills are shifting to new blast furnaces in the month of Jan’19 which in turn resulted to short supply in domestic market and fall in exports volumes.

Meanwhile JFE temporarily shut its three blast furnaces in the period Oct’18-Jan’19 bearing potential loss of 1.4 MnT. Whereas Nippon and Sumitomo Metal Corp shut its No. 5 blast furnace (old) at Wakayama Works in Jan’19, though the  No. 2 (new) blast furnace has commenced its production on 15, Feb’19.

Japan Finish long steel exports hit 13 month low in Jan’19. As per customs data, the nation has exported about 0.15 MnT Finish Long steel in Jan’19 down by 23.52% against 0.20 MnT in Dec’18. In line Y-o-Y, exports drifted down by 18.35% against 0.19 MnT in Jan’18.

Lessening export volume would have been considered with low production amid lack of supply by domestic mills and also hampered procurement of raw material could be considered after dam collapse in Brazil.

Japan scrap export has observed a significant drop of 24.7% in Jan’19. As per customs data, Japan exported 0.50 MnT ferrous scrap in Jan’19 as against 0.67 MnT in Dec’18. With heavy winter conditions amid low generation and sharply declined scrap imports from China and Vietnam ahead of Chinese New Year Holidays in early Feb’19 could have resulted downfall.

Japan’s exports to Vietnam fell sharply by 73% M-o-M to 0.04 MnT ferrous scrap against 0.17 MnT in Dec’18. Inline, Chinese scrap imports from Japan record low 1,555 MT in Jan’19, down 99% M-o-M as against 126,825 MT in Dec’18.

Japan stainless steel exports shifted down. On monthly analysis it was learned from the custom that Finished Flat Stainless Steel decline by 18.2% M-o-M & stood at 39,461 MT in Jan’19. And also reported a down fall of 28.5% Y-o-Y as against 55,156 MT in Jan’18.

In addition, Finished Long Stainless Steel plunged by 14.2% & stood at 9,017 MT in Jan’19 as against 10,508 MT in Dec’18.

Japan Graphite Electrode exports fall by 27.3% in Jan’19 & stood at 6,348 MT. And export to South Korea reported at 2,201 MT & 743 MT to United States.

Quantity in MT
Source: SteelMint Stats