Japan's Iron Ore Imports Decline in July Amidst Weak Steel Demand

Decrease in Australian Supplies and Rising Concerns Over Steel Imports

Japan imported approximately 8.4 million tons of iron ore in July, marking an 8.6% decrease compared to the previous year due to reduced steel demand. Imports from Australia, Japan’s largest supplier, fell by 13.6% to 4.6 million tons, while shipments from Brazil increased by 8.9% to 3.1 million tons.

The decline in imports is attributed to weakened steel demand, particularly from the automotive sector. In June, orders for ordinary steel used in automobiles dropped by 10.4%, as reported by the Japan Iron and Steel Federation (JISF). This downturn is expected to persist through September due to ongoing production suspensions by some manufacturers, including Toyota.

Japanese steel producers are concerned about an influx of foreign steel, particularly from China. Imports of ordinary steel products from China surged by 43% from April to June, exacerbating worries about a demand-supply imbalance. Despite these concerns, Japan's Ministry of Economy, Trade, and Industry (Meti) is currently monitoring the situation without immediate plans for intervention.