Japan Carbon Steel Order Rises by 1.2% in April

Japanese steel makers order receipt increased by 1.2% to 6.352 million tonnes for carbon steel products in April from March, announced by Japan Iron and Steel Federation on Monday. The order decreased by 3.2% to 3.828 million tonnes from domestic buyers while the order increased by 8.8% to 2.523 million tonnes for export. The carbon steel order recovered around 90% of the peak before Lehman shock. However, the steel makers depend deeply on offshore demand.

The domestic construction order for carbon steel decreased by 9.7% to 900,000 tonnes in April from March. The order for manufacturers increased by 3.7% to 1.923 million tonnes.

The carbon steel order in April kept more than 900,000 tonnes for domestic construction demand for 2 months in a row. However, the order from distributors, around 70% of which is estimated to be used in construction market.

The order tends to decrease in April due to seasonal slow demand. However, the lower demand is estimated to be partly due to backlash of speculative purchase with expectation for higher price under surging raw materials cost. The order from industrial machinery recovers from the bottom even at slow pace.

The carbon steel order receipt in April increased by 39.8% from a year earlier. The order increased by 37.6% from domestic buyers and by 43.2% for export.