Japan Special Steel Order Rises by 4.2% in April-June

Japanese steel makers’ order receipt of special steel products increased by 4.2% to 4.734 million tonnes in April-June from January-March, according to Japan Iron and Steel Federation. The quarterly order volume has kept more than 4 million tonnes since October-December 2009 while the level was still lower than the recent peak of quarterly averaged 4.904 million tonnes in fiscal 2007 ended March 2008. The order is recovering from the bottom after Lehman shock.

The order from domestic buyers reached 3.01 million tonnes in April-June 2010, which hit first 3 million tonnes mark in 7 quarters. The order receipt reached 1 million tonnes in May and June. The order volume kept more than 1 million tonnes through October 2008 after it reached 1.088 million tonnes in June 2004 but the volume decreased as low as 412,216 tonnes in March 2009 under worldwide slow economy.

While the domestic demand recovered normal level, the export order decreased for 2 months in a row from the recent peak of 629,658 tonnes in April 2010. Some industry watchers see the reduction was due to the makers’ effort to follow recovering domestic demand while others concern Asian special steel demand slows due to Chinese higher inventory and adjustment.

The order receipt of special steel products decreased by 2.1% to 1.542 million tonnes in June from May. The order from domestic buyers increased by 0.2% to 1.013 million tonnes while the export order decreased by 6.2% to 529,381 tonnes. The lower export order impacted on the total volume.

The domestic order decreased by 13.3% to 36,743 tonnes for construction in June from May. The order decreased by 11.3% to 140,005 tonnes for wire processing products while the order increased by 3.3% to 317,776 tonnes for automobile and by 23.3% to 77,867 tonnes for bearing.