Japan Steel Export Rate Hits First 40% of Output

Japanese export rate of crude steel output seemed to increase to around 40% in fiscal 2009 ended March 2010, which became the historical high. The highest record was 38.6% in fiscal 1976 and the rate was 34.4% in fiscal 2008. The export increased due to the growing demand in China and other Asian countries while Japanese raw steel output decreased by 8.6% to 96.45 million tonnes in fiscal 2009 from fiscal 2008, which became less than 100 million tonnes for the first time in 10 years, according to Japan Iron and Steel Federation. The export could renew the highest record of 38.45 million tonnes in fiscal 2007.

The export rate became the highest level at 38-39% in fiscal 1976 and 1977 and the lowest record was 17.2% in fiscal 1990 when the domestic demand was strong.

Japanese raw steel output was 19.09 million tonnes in April-June of fiscal 2009, down by around 40% from the same period of fiscal 2008. The output increased to 24.24 million tonnes in July-September, 26.61 million tonnes in October-December and 26.51 million tonnes in January-March 2010.

The steel export was low at 7.19 million tonnes in April-June 2009. However, the export increased to 10.19 million tonnes in July-September and 10.55 million tonnes in October-December. The export recorded historical high at 3.44 million tonnes in January and 3.42 million tonnes in February. The export in 11 months through February 2010 was higher than the yearly volume in fiscal 2008. The export would increase in March from February due to the seasonal factor and the volume would become around 40 million tonnes of raw steel, which is about 42 % of Japanese raw steel output.