Japan Steel Export Shows First Down in 15 Months

Japanese steel export decreased by 0.6% to 3.377 million tonnes in October from a year earlier, the first year-to-year minus in 15 months, according to Ministry of Finance. After Lehman’s fall, the export kept uptrend but higher yen rate impacted the export. By month-to-month comparison, the export decreased by 8.9%. The export decreased to South Korea, Taiwan and ASEAN. Yen rate still stays at 80-85 yen against US dollar. The export volume would continue to decrease when Asian steel market seems entering adjustment phase mainly in China and South Korea.

Demand for high grade steel maintains strong in Asia from local sites of Japanese automobile and appliance makers. The export has shown plus trend until September despite of higher yen rate. Average steel export price increased by 1.8% to FOB 87,359 yen per tonne in October from September, the first plus in 3 months. Meanwhile, the export to Asia decreased by 5.2% to 2.88 million tonnes, the first minus in 3 months.

The export to NIES decreased by 9.1% to 1.228 million tonnes, decreased by 8.2% to 946,000 tonnes to ASEAN, while increased by 0.4% to 591,000 tonnes to China.

On the other hand, Japanese steel import increased by 17.2% to 618,063 tonnes in October from September, the first plus in 4 months. By year-to-year comparison, the import increased by 19.5%. Average steel import price downed by 7.2% to CIF 109,888 yen per tonne. Higher yen rate drove the import. The import increased by 15.7% to 432,013 tonnes from Asia, by 59.3% to 112,663 tonnes from China, and by 6.3% to 295,693 tonnes from NIES.