Japan Steel Exports Hit Lowest Level in Three Decades

Japan's steel exports fell by 4% in the first fiscal half ending in September. The total volume reached 14.51 million tons, marking the lowest level for this period since 1997. This represents the third consecutive year of decline in the country's steel shipments.

The reduction primarily affected common steel products, such as hot-rolled coils used in the automotive and construction industries. Sales to Southeast Asia, which account for 60% of Japan's export volume, dropped by 3%. The annual total is expected to remain below the 30-million-ton mark for the second year in a row.

The global protectionist landscape is the main factor behind the decline in exports. Countries like India and Mexico have launched anti-dumping investigations against Japanese steel products. Uncertainty regarding trade retaliation hinders the flow of goods even before definitive decisions are made.

China contributes to this situation with its excess production, which triggers a chain reaction of trade restrictions. Additionally, the European Union has implemented carbon adjustment mechanisms and preference policies for local vehicles. These barriers affect the competitiveness and distribution of Japanese production in the international market.