Japanese July Steel Exports Topped 3mn Tons For 1st Time In 10 Months

Discussion in 'Economics' started by ASusilovic, Sep 1, 2009.

  1. TOKYO (Nikkei)--Japan's steel exports grew 11.6% from the previous month to 3.2 million tons in July, surpassing the 3 million ton mark for the first time in 10 months, the Japan Iron and Steel Federation said Tuesday.

    The figure rose for the third month in a row on strong shipments to China, which is enjoying economic growth on the back of government stimulus measures, and to South Korea, which is exporting more home appliances and other goods to China, according to the industry group.

    On a year-on-year basis, Japan's exports slipped 3.2%. Although shipments were down for the 10th consecutive month, the margin of decline narrowed for a second straight month. It was the first time in nine months that exports dipped by only a single-digit percentage.

    Exports to South Korea jumped 18.5% on the year to 877,000 tons. This was the second consecutive month that shipments grew to the largest market for Japanese steel. The figure was pushed up by a 21.2% surge in shipments of hot-rolled steel plate, which is used in such products as home appliances.

    Shipments to China shot up 9.1% from a year earlier to 634,000 tons, climbing for the second straight month. Exports of hot-rolled steel plate more than quadrupled.

    Even though shipments to such markets as Taiwan and Thailand continued to fall by double digits in July, the federation said that Japan's overall steel exports may recover to the year-earlier level in August.

    With exports growing, Nippon Steel Corp. (5401) restarted a blast furnace at its Oita Prefecture steelworks that it had idled in August. Other major steelmakers are also boosting operating rates.

    Overall crude steel output by the five blast furnace steelmakers is projected at roughly 18.3 million tons for the July-September quarter, up about 30% from the previous quarter.

  2. nevadan


    Chinese are cashing in more US Treasuries?
  3. Doesn't China have its own stimulus program and has an over heated economy with labor shortages. Also other countries with their own stimuli have created additional consumption demanding chinese goods.

    Wouldn't they be cashing mature yen notes? They are buying from Japan, not the U.S. This should further develop a force of appreciation of yen to dollar or other currencies. Demand for yen would be up all other things equal since China would need yen for the steel.
  4. i guess they might be buying the yen with cashed dollar bonds. Good point.