Japanese iron ore imports decline sharply in 2020

Japanese iron ore imports fell sharply last year in line with a drop in crude steel output because of the Covid-19 pandemic and an ensuing slump in manufacturing.

Japan imported a preliminary 99mn t of iron ore last year, down by 17pc from 2019, according to data released today by the finance ministry. The imports were valued at ¥1 trillion ($10bn), down by 14pc from 2019.

The 2020 imports of iron ore were below 105mn t in 2009, when crude steel output plunged because of the 2008-09 global financial crisis. Japanese crude steel output is expected to fall to its lowest level in 52 years during the April 2020-March 2021 fiscal year.

Exports of steel products also dropped by 5pc on the year to 32mn t last year, while imports of steel products fell by 21pc to 6.6mn t, according to the ministry data.

Japanese iron ore imports in December increased by 5pc from a year earlier to 10mn t in line with recovering crude steel output. The import value edged up by 0.2pc on the year to ¥113bn. Steel exports were down by 8pc on the year to 2.5mn t, while steel imports declined by 15pc to 553,483t, the ministry said.

Japan last year posted its first annual trade surplus since 2017. But the surplus was pressured down to ¥674bn by an 11pc drop in exports, as the coronavirus pandemic dampened car exports.

The country's December exports posted its first year-on-year increase in more than two years, supported by strong exports to China and Asia. This led Japan to post its sixth consecutive month of trade surplus at ¥751bn for December. But the country's second state of emergency has slowed consumer spending and is casting a cloud over Japan's economic recovery.

By Rieko Suda