JPN Exporting Car Inventory Gradually Decreases in January

Japanese automobile export inventory for North America decreased to 94 days in January from 100 days in December, according to the survey by Ministry of Economy, Trade & Industry. The survey covers domestic industries including automobile and shipbuilding, related to steel demand. Meanwhile, energy related industries show relatively steady conditions such as industrial machine, heavy electric machine and power generation.

According to the survey, Japanese passenger car sales decreased by 20% in January from a year earlier and truck sales decreased by 19.4%. The total sales shrank by 19.9% year-on-year, which represented year-on-year decline for 6 months in a row. Quick estimation of Japanese car export decreased by 72% for North America in January from year ago, while down by 63% for Europe and by 55% for Asia.

As to shipbuilding industry, Japanese shipbuilders still hold order backlogs for additional 3-4 years though South Korean shipbuilders are suffered from order cancels. Japanese shipbuilders’ order contracts for exporting vessels totaled 313,000 gross tons in January, the level almost as same as a year earlier.

Order receipt value at Japanese industrial machine makers increased by 18.2% in December from a year earlier. Order receipt from domestic customers decreased by 7.4% while that from overseas customers jumped up by 54.3%. Orders increased for boilers, motors, chemical machines and tanks those which are related to power generating facilities.

Production value of Japanese heavy electric machine makers decreased by 9.1% in December from a year earlier, among which power generating motor declined by 21.8% while gas turbine expanded by 7 times. Production value of stationary electric machines increased by 7.5%, among which capacitors increased by 3.7% using magnetic steel sheet.