Japan Carbon Steel Import Declines for 2 Straight Months to August

Japanese carbon steel import decreased by 9.1% to 306,621 tonnes in August from July, which decreased for 2 months in a row, announced by Japan Iron and Steel Federation on Wednesday. The import decreased when Chinese government reduced tax return for steel export in July and Japanese users reduced the purchase from overseas due to the increasing inventory under lower-than-expected domestic demand. However, the import stayed high at more than 300,000 tonnes per month for 5 months since April.

The import of special steel decreased by 14.7% to 26,213 tonnes in August from July. The processed steel products decreased by 4.1% to 52,464 tonnes. Both of the import decreased for 2 months in a row.

The carbon steel import increased by 4.4% to 196,152 tonnes from South Korea in August from July. The import decreased by 42.8% to 43,842 tonnes from China and by 1.2% to 61,772 tonnes from Taiwan. POSCO and Hyundai Steel try to increase the export to Japan under weak won exchange rate when they expand the capacity. Japanese automobile makers use more POSCO’s steel, according to one Japanese trade firm source.