By end-September, stocks of imported carbon steel hot-rolled coil (HRC), cold-rolled coil (CRC) and heavy plates at Japan’s key ports of Tokyo and Osaka declined by 6.2% on month but 19.3% higher on year to 167,000 tonnes, according to the latest data released by Japanese trading house Hanwa Co. on October 27.
The data compiled and published by Hanwa since September 1991 are recognized as a key indicator of Japan’s demand for imported carbon steel flats to market participants, Myseel Global notes.
Market sources attributed the on-month drop in September to the high base at end-August which hit a record high since February 2020. “The decline is partially caused by stagnated unloading at ports due to terrible weather in September, so it doesn’t mean a recovery of imported flat demand in Japan,” a Tokyo-based flat steel trader said.
The latest preliminary data by the country’s Ministry of Finance showed that Japan imported 567,948 tonnes of steel in September, down 5.4% on month and 9.6% on year, as reported.
“September arrivals were mostly booked around July, when overseas market prices were low and Japanese buyers were believed to have more purchases,” said a second trader in Tokyo, adding that “but actual arrivals in September were lower because of stagnated unloading, so we expect those orders will be reflected in October.”
“We believe port stocks will remain high in coming months, as Japanese manufacturers are improving their operation, albeit slowly, and deliveries from ports won’t become active anytime soon,” he predicted.
Written by Yoko Manabe, yoko.manabe@mysteel.com
Note: This article has been written in accordance with an article exchange agreement between Mysteel Global and SteelMint.
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