Japan Steel’s Order Intake Drops by 17.2% in July

Japanese steel makers’ carbon steel order receipt decreased by 17.2% to 5.782 million tonnes in July from a year earlier, which represented year-to-year minus for 12 consecutive months, announced by Japan Iron and Steel Federation on Thursday. The orders increased by 8.0% in July from June due to steady export and domestic demand recovery, which represented month-to-month plus for 4 straight months. The order volume recovered 80% level against the peak in July 2008. The orders for April-July decreased by 25.8% to 20.267 million tonnes from the same period of 2008.

The order increased by 8.4% to 2.329 million tonnes for export in July from a year earlier, which represented year-to-year plus for 2 consecutive months. Compared with June, the orders increased by 3.1%. In June, order receipt for export hit the highest since March 1985.

The orders decreased by 28.6% to 3.453 million tonnes from domestic users in July from a year earlier, while increased by 11.5% from June. The orders from domestic manufacturers increased by 25.7% to 1.689 million tonnes in July from a year earlier. The domestic construction orders decreased by 28.9% to 847,000 tonnes. The demand decreased by 24.0% from automobiles, by 24.5% from appliances in July from a year earlier, while increased by 23.0% from automobiles and by 29.6% from appliances month-to-month.

The orders recovered for sheet especially from automobile and export. The orders decreased by 14.4% for hot rolled coil in July from a year earlier, by 11.6% for cold rolled coil and by 22.8% for zinc coated sheet in July from a year earlier, while increased by 10% for hot rolled and zinc coated sheet in July from June and by 5.5% for cold rolled coil.