Steel orders from Japanese manufacturing sector up in April

Japanese steel demand is showing more signs of being well on the road to recovery, with manufacturing sector orders rising in April.

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

Although overall orders were down by 3% from the previous month to 5.97 million tonnes, those from the manufacturing sector rose by 1.7% to 1.59 million tonnes, according to the Japan Iron & Steel Federation.

“The mood among manufacturers is good, especially with the weaker yen, and we think that manufacturing demand will continue to improve slowly,” an official at Japan’s largest steel producer, Nippon Steel & Sumitomo Metal Corp (NSSMC), told Steel First.

Automobile manufacturers -- the sector’s biggest consumers – increased their orders by 0.4% to 719,000 tonnes, while those from industrial machinery and equipment manufacturers were up by 18.2% from the previous month to 156,000 tonnes.

Orders from electrical equipment manufacturers also rose by 7.1% from March to 123,000 tonnes.

Even demand from shipbuilders, which has been the hardest-hit segment of the manufacturing sector, rose by 1.8% to 299,000 tonnes.

Still, total manufacturing orders were down 3.8% compared with the same period in 2012, indicating that while the economy is improving, the pace of its recovery is still quite slow.

Meanwhile, orders from the construction sector took something of a breather in April, retreating by 3.6% month-on-month to 1.02 million tonnes, while those from dealers – an estimated 70% of which is destined for the construction industry – decreased by 7.8% to 1.12 million tonnes.

Nevertheless, on the year, demand from the construction sector was up by 10%.

“We think that construction demand will continue to grow faster than that for the manufacturing sector,” the NSSMC official noted.

What to read next
Any bolstering effect on US ferrous scrap exports from the up-month in February’s domestic trade will be tempered in the immediate aftermath of two earthquakes in Turkey — the country’s largest importing region — on Monday, February 6
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
We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
Proceed