(Minews) - Japanese domestic steel shipments remained strong in December although export volumes slumped.
Total shipments were 6.4 million tonnes, 7.4% higher year-onyear, indicating a strong recovery in underlying demand, according to the latest figures from the Japan Iron & Steel Federation (JISF).
Shipments were down by 3.3% from the previous month’s level.
As in recent months, domestic demand has remained especially strong but exports continue to struggle in the face of weak regional demand, JISF said.
Exports, after rebounding in November off their lowest level in two years in the preceding month, dropped again. They fell 1.7% on the month and 7.2% on the year to 2.19 million tonnes.
Domestic shipments, on the other hand, continued their strong gains. Although volumes were down by 4% from November, which recorded the highest level since at least March 2012, they were up 17% on the year, at 4.20 million tonnes.
The figures mean that for the calendar year 2013, shipment volumes rose by 3.2% to 75.5 million tonnes, the highest level since at least 2010.
Domestic shipments rose by 3.6% to 48.29 million tonnes, and exports up by 2.5% to 27.2 million tonnes.
Moreover, industry officials say they expect demand to remain robust ahead of a consumption tax hike in April.
Despite the rise in overall shipments, mills reduced finished steel output levels after increasing them in the previous month to their highest level since May. Output of finished steel products totalled 6.35 million tonnes, down by 1.3% from November. But levels were still 9% higher on the year.
On the other hand, crude steel production totalled 9.33 million tonnes, up 0.7% from November and 9% higher on the year.
Stockpile levels, meanwhile, fell back to their lowest levels since July, decreasing by 0.7% from November to reach 6.42 million tonnes.
Inventory levels among steel producers increased by 0.3% to 5.52 million tonnes.
In direct contrast, those held by dealers dropped to new a multi-year low, falling by 4.8% from November to 1.16 million tonnes.
Stockpiles earmarked for export declined by 8% month-on month to a nine-month low of 898,000 tonnes, while those set aside for the domestic market were up 0.6% over the same period at 5.52 million tonnes.
