Japan's steel imports and exports increased in July

According to data released by the Ministry of Finance, Japan's steel exports increased by 4.4% y-o-y to 2.87 million tons in July. This marks the first growth in steel exports in six months.

There were significant developments in Japan's steel trade with the European Union (EU). Exports to the EU rose to 272,000 tons, the second-highest level since last May. Despite this increase, the future outlook for exports to the EU is uncertain. As of July, global quotas for hot-rolled flat steel products were adjusted, limiting Japan's export capacity to 15%. In addition, the European Commission launched an anti-dumping investigation into imports of hot-rolled flat steel products from Japan, Vietnam, India, and Egypt. July export figures were recorded before these trade measures came into effect, so their impact is yet to be seen.

Japan's steel exports to the ASEAN region increased by 3.8% to around 923,000 tons. In contrast, exports to South Korea fell by 12.8% and to China by 8.7%. Meanwhile, Japan's steel imports increased significantly in July, rising 15.4% y-o-y to 709,000 tons.