Japan Carbon Steel Import Decreases by 19.5% M/M July

Japanese carbon steel import decreased by 19.5% to 340,689 tonnes in July from June, which decreased for the first time in 5 months when the inventory is excess in the market. The import took a downward turn for plate, hot rolled steel sheet or cold rolled steel sheet for spot sales. However, the import increased for magnetic steel sheet and galvanized steel sheet for 3 consecutive months, which was record high when major users, heavy electric machinery, automobile or building material maker are increasing import from mainly South Korea due to high yen rate at below 80 yen per dollar and price hike of Japanese integrated steel makers.

By items, the import decreased by 56.7% to 4,863 tonnes for H-beam, decreased by 45.5% to 17,444 tonnes for wire rod, decreased by 34.8% to 32,153 tonnes for plate, decreased by 23.8% to 125,586 tonnes for hot rolled steel sheet, decreased by 7.7% to 74,693 tonnes for cold rolled steel sheet and decreased by 10.8% to 12.440 tonnes for steel tube. By countries, the import decreased by 4.6% to 221,874 tonnes from South Korea, decreased by 10.7% to 64,869 tonnes from Taiwan and decreased by 57% to 48443 tonnes from China.

On the other hand, the import increased by 39.2% to 5,820 tonnes for magnetic steel sheet, which increased by 96.8% for January-July 2011 from the same period of 2010, while increased by 17.7% to 50,924 tonnes for galvanized steel sheet, which increased by 23.9% year-on-year for January-July 2011.

Automotive steel sheet and magnetic steel sheet are high functional products those which Japanese integrated steel makers have mainly supplied. But South Korean Steel makers are recently trying to increase the sales of these products taking advantage of weak won exchange rate. Another background seems that Japanese major users are seeking diversification of material suppliers due to relatively low price and expected integration of Nippon Steel and Sumitomo Metal Industries in 2012.