Japanese steel orders fell 1.9% in April

Paragraph entered by Atlantic migration, in order for SteelFirst articles to display correctly on Metal Bulletin.

Japanese steel orders fell by 1.9% in April, with a 5.6% drop in domestic consumption offsetting a 5.5% increase in export orders.

Total orders came in at 6.22 million tonnes, with domestic orders totalling 3.71 million tonnes and exports, 2.41 million tonnes.

Manufacturing sector steel orders fell for a second straight month in April, dropping by 2.7% to 1.65 million tonnes as manufacturers of automobiles, electrical equipment and machinery worked through stockpiles, according to data from the Japan Iron and Steel Federation.

Orders from automakers fell by 6.1% to 717,000 tonnes following a 5.4% drop in March, while those form electrical equipment manufacturers retreated by 3.3% to 129,000 tonnes.

On the other hand, an overall rebound in the domestic economy helped lift demand from industrial machinery and equipment manufacturers by 7.8% to 148,000 tonnes.

Orders from shipbuilders also rebounded, rising by 5.5% to 383,000 tonnes.

However, orders from the construction sector dropped by 9.6% to 956,000 tonnes, while those from dealers – an estimated 70% of which is destined for the construction industry – fell by 6.1% to 1.1 million tonnes.

“Orders always tend to fall in April because there is a lot of stocking and order-taking in March ahead of the end of the financial year, which distorts the figures.

“But there is still underlying domestic demand especially from the auto industry and re-construction sector while exports benefited from the falling yen,” an industry official told Metal Bulletin.

“But the rise of the yen again and the situation in Europe are major concerns for us going forward,” he added.

Sentiment among large Japanese companies worsened in the April-June period, a government survey showed on Monday June 11, deteriorating for the third consecutive quarter as the yen’s renewed strength and the ongoing eurozone crisis weighed on conditions.

But sentiment is expected to improve sharply through the end of the year, suggesting that companies see a recovery in the domestic economic continuing despite the turmoil in Europe and an uncertain outlook in the USA.

What to read next
Steel trading and production have come to a halt in the eastern Turkish region of Iskenderun following a devastating earthquake that hit the region on Monday February 6 and put mills in the area under force majeure, sources told Fastmarkets on Tuesday
A 120-day closure of four Illinois dams scheduled for 2023 will disrupt barge shipments and have potentially both negative and positive impacts on scrap and finished steel products from Canada to Texas
Market participants are cautiously optimistic about a rebound in iron ore concentrate premiums, with steelmakers around the world set to ramp-up production in line with an anticipated increase in demand for steel products, Fastmarkets understands
General Motors (GM) is investing $650 million to develop the Thacker Pass mine in Nevada, the largest known source of lithium in the US and the third largest in the world
Electrolysis processes developed by Boston Metal and Electra that eliminate the need for coal in steel production could be key to a net-zero emissions future for the metallics industry, attendees learned at Fastmarkets’ conference on January 17-19 in Dallas
We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
Proceed