Japan Carbon Steel Order Declines by 10.3% in May

Japanese carbon steel order receipt decreased by 10.3% to 5.7 million tonnes in May from April, which decreased to less than 6 million tonnes for the first time in 4 months, announced by Japan Iron and Steel Federation on Wednesday. The domestic order decreased by 5.3% to 3.626 million tonnes in May from April due to the decline in construction demand while the order for export decreased by 17.8% to 2.073 million tonnes.

The domestic order for construction decreased by 9.7% to 813,000 tonnes in May from April while the order for manufacturing increased by 0.8% to 1.013 million tonnes.

The order for export, which leaded the increase in Japanese steel output showed high level at 2 million tonnes per month for 9 straight months through May. However, the order decreased by 450,000 tonnes in May from April. The steel demand levels off in Asia. Japanese steel output would collapse if the order for export continues decreasing.