Japan Steel Export Increases by 1.8% in January

Japanese steel export increased by 1.8% to 3.473 million tones in January from a year earlier, which was record high as January, according to Ministry of Finance. Because the demand maintains good situation in Asia and international steel price is rising, the export increased. There isn’t impact by political uncertainty to the export. However, antigovernment demonstration is spreading in Mid-East. Because the political uncertainty may have effect to crude oil price and European economy, the export has possible to decrease under higher yen rate.

The export decreased by 5.1% from the previous month, which decreased for 2 consecutive months. Average export price decreased by 4.9% to FOB 84,064 yen per tonne. The export is expected to decrease by Chinese New Year in February, but continues to be firm thanks to expansion of demand in emerging countries such as ASEAN.

The export decreased by 2.4% to 2.849 million tones to Asia, 10.5% to 1.226 million tones to South Korea, Taiwan, Hong Kong or Singapore, while increased by 2.1 % to 606,000 tonnes to China and 3.9% to 922,000 tonnes to ASEN.

The export decreased by 24.8% to 96,000 tonnes to Mid-East. The impact of the export to Mid-East is low to whole export when the export to Mid-East accounts for near 3% against whole export. The export increased by 14% to 1.37 million tones to Mid-East in 2010, and was flat at about 550,000 tonnes to Africa. Japanese integrated steel makers and large dealers are increasing investment to Mid-East and Africa when they place importance on these areas.