Japan Steel Export Drops by 11.8% in August

Japanese steel export decreased by 11.8% to 3.268 million tonnes in September from a year earlier, which decreased for 7 months in a row, announced by Ministry of Finance on Monday. The export condition got severer when offshore steel market price was low under high yen rate. The export decreased by 5.4% from August, which decreased for the first time in 2 months. The export would decrease in and after October when yen rate renews historical high and Japanese automakers have stopped the operation in Thailand after the flood.

The averaged steel export price decreased by 1.6% to FOB 92,858 yen per tonne in September from August, which decreased for 2 months in a row. Asian steel market price decreases under loose supply when Chinese steel production keeps high and South Korean steel makers increase the export.

Japanese steel export to Asia, which represents 80% of total export, decreased by 13.6% to 2.627 million tonnes in September from a year earlier. The volume decreased by 5.0% from August. The export to Asian Newly Industrializing Economies (NIES) was 949,000 tonnes, which was 29.8% lower than a year earlier level and 12.3% lower than August level. The export to China with high level automobile production growth was 580,000 tonnes, which was 1.6% lower than a year earlier and 3.0% lower than August level.

The export to Association of Southeast Asian Nations (ASEAN) was 948,000 tonnes in September, which was 7.9% lower than a year earlier level and 5.9% lower than August level. The export would decrease widely in and after October when Thai automotive parts makers, which also supply the parts to ASEAN countries, stop the operation. The export to Middle East was 129,000 tonnes, which was 27.0% higher than a year earlier level and 18.9% lower than August level.

The steel import increased by 6.1% to 559,550 tonnes in September from a year earlier, which increased for 5 months in a row. The import decreased by 14.6% from August, which decreased for the first time in 2 months. The averaged import price was CIF 129,404 yen per tonne, which was 0.1% higher than August level, which increased for 5 months in a row.

The import from Asia was 433,442 tonnes in September, which was 16.0% higher than a year earlier and 16.3% lower than August level. The import from Asian NIES was 324,636 tonnes, which was 17.1% higher than a year earlier and 15.2% lower than August level. The import from China was 85,804 tonnes, which was 21.2% higher than a year earlier and 15.7% lower than August level.