By the end of June, Japan’s stocks of imported carbon steel flats including hot-rolled coils (HRCs), cold-rolled coils (CRCs) and heavy plates at key ports of Tokyo and Osaka increased by 1.3% on month to 161,000 tonnes, marking the second consecutive on-month rise after the decline in the first four months of this year, according to the latest data released by Japanese trading house Hanwa Co.
The data compiled by the Japanese trading house since September 1991 have been a key indicator of the country’s demand for imported carbon steel flats to market participants, Mysteel Global notes.
A Tokyo-based flat steel trader attributed the rise partially to slower deliveries from ports to manufacturers because their operations had been not active with the delay in component deliveries amid COVID-19 outbreaks.
“Japanese automakers seemed to have planned to lift operations from September. If it is realized, they may start picking up flats piled at ports soon. But there’s no sign of improvement for now,” he added.
A second trader in Tokyo believed that the rise in June might also have to do with increased arrivals of flat products from overseas suppliers. “More steel materials from China arrived in June, and Osaka buyers tend to buy more Chinese materials compared with Tokyo. And it might be why stocks at Osaka ports increased noticeably,” he added.
Japan imported about 637,157 tonnes of steel products in June, up 11.9% on month and 13% higher on year. Among the total, imports from China were at 119,784 tonnes, up 20.5% on year and 52.6% higher on year, according to the preliminary data from Japan’s Ministry of Finance.
Japan’s steel trade data by product will be released by Japan Iron & Steel Federation on July 29.
Note: This article has been published under an article exchange agreement between Mysteel Global and SteelMint.
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