Japan: Ordinary steel exports drop by 8.3% y-o-y in Nov'23

Japan's ordinary steel exports dropped by 8.3% y-o-y to 1.73 million tonnes (mnt) in November 2023, reported by Japan Iron and Steel Federation (JISF), marking the first y-o-y decline in five months.

Japan's exports of wide hot-rolled coils saw their first decline in eight months, with the largest variety falling 4.6% y-o-y to 934,000 t. South Korea, a key buyer, also reduced its import for the second consecutive month, with a 7.6% m-o-m decrease to 134,000 t. These declines come amid growing concerns in South Korea about the price and quantity of Japanese hot coils, and potential efforts by Japan to limit exports.

As a result of production, heavy plate sales declined by 25.7% y-o-y to 189,000 t and falling below 200,000 t first time in 10 months.

Steel exports fell by 7% y-o-y to 2.58 mnt. South Korea and Thailand reported the decline, by 15.8% y-o-y to 422,000 t and 18.6% y-o-y to 347,000 t, respectively. Moreover, China's exports continued their downward slide, falling 13% to 261,000 t, marking the 21st consecutive month of y-o-y decline. This emphasises the ongoing trend in China and its contribution to the overall decrease.

Outlook

The recent decline in Japan's steel exports, particularly to key Asian markets, is a worrying sign for the future. This, combined with China's ongoing export slump, raises concerns about a broader regional demand slowdown. The potential for further declines in Japanese steel exports is high unless market conditions or trade policies change significantly. This could have significant implications for the Japanese steel industry and its workers.

Note: This article has been published in accordance with an article exchange agreement between JMD and SteelMint.