Japan Steel Export Hits First Drop in 2 Months

Japanese steel export decreased by 5.5% to 3.286 million tonnes in July from June, which decreased for the first time in 2 months, announced by Ministry of Finance on Thursday. The demand is firm mainly when Japanese car makers’ output increased. However, Chinese steel makers increased low-priced steel export and yen exchange rate became strong at less than 80 yen per US dollar. Industry sources see Japanese steel export would decrease in and after October due to higher domestic steel sheet demand when Japanese car makers increase the domestic output after the major earthquake earlier than original plan.

The steel export decreased by 0.3% in July from a year earlier, which decreased for 5 months in a row. The export decreased by 2.0% to 24.65 million tonnes in January-July from same period of last year. The averaged export price increased by 2.2% to FOB 95,005 yen per tonne in July from June, which increased for the first time in 3 months.

The export decreased by 7.0% to 2.618 million tonnes for Asia in July from June, which decreased for the first time in 2 months. The export decreased by 7.5% to 1.076 million tonnes for Asia NIES, which decreased for 4 months in a row. The export decreased by 7.6% to 534,000 tonnes for China and by 1.2% to 931,000 tonnes for ASEAN. The export decreased by 14.3% to 102,000 tonnes for Middle East.