Japan continued to reduce iron ore imports from Australia in July, as the northeast Asian country's steel production remained low despite a slight recovery from a Covid-19-driven slump a month earlier.
Iron ore imports from Australia fell sharply by 39pc on the year to 3.8mn t in July, according to preliminary data from the Japanese finance ministry. Japan also slashed iron ore imports from Brazil by 59pc from a year earlier to 1.2mn t in July.
Australia and Brazil accounted for 84pc of Japan's total imports in July. Total iron ore imports declined by 43pc on the year to 6mn t in July, the ministry said earlier.
Japan's crude steel production rebounded slightly in July from a month earlier, in response to recovering domestic car output. Steel mills have forecast a recovery in July-September steel production from lows in April-June when demand from the manufacturing sector slumped because of Covid-19 restrictions. Steel output is expected to further increase after October.
| Japan's iron ore imports ('000t) | ||||||
| Origin | Jul '20 | Jul '19 | ± % | Jan-Jul 2020 | Jan-Jul 2019 | ± % |
| Australia | 3,783 | 6,137 | -39 | 32,682 | 40,183 | -19 |
| Brazil | 1,239 | 2,986 | -59 | 14,341 | 18,615 | -23 |
| Canada | 236 | 505 | -53 | 3,343 | 4,093 | -18 |
| US | 134 | 130 | 3 | 1,042 | 1,063 | -2 |
| New Zealand | 0.2 | 0 | na | 82 | 82 | unchanged |
| India | 70 | 55 | 27 | 971 | 1,158 | -16 |
| China | 0 | 151 | na | 397 | 510 | -22 |
| South Africa | 236 | 400 | -41 | 2,059 | 2,049 | 0.5 |
| Russia | 0 | 0 | na | 313 | 142 | 120 |
| Mauritania | 151 | 0 | na | 452 | 450 | 0.4 |
| Chile | 0 | 0 | na | 152 | 103 | 48 |
| Peru | 151 | 0 | na | 302 | 305 | -1 |
| Ukraine | 0 | 209 | na | 94 | 806 | -88 |
| Sweden | 0 | 0 | na | 0 | 163 | na |
| Total | 6,000 | 10,573 | -43 | 56,230 | 69,722 | -19 |
| Source: Japan's finance ministry | ||||||
