Japan exported around 3.26 million tonnes of steel in November, up 0.7% year-on-year but still a fall of -3.1% month-on-month, according to preliminary customs statistics provided by the Japanese Ministry of Finance (JISF). Asean countries remained a key driver of export growth, as Japanese exports to this region surged over 8% y-o-y to 1.076mt of steel, Kallanish notes.

Over January to November Japan has exported 37.82mt of steel, a decrease of -0.6% y-o-y. Volumes to major trading partner Korea increased 5.5% to 6.44mt over the same period, exports to Thailand has increased 10.1% to 5.3mt and exports to China increased by 1.9% to 5.03mt.

Taiwan however, where there has also previously been captive demand, saw exports drop -12.8% y-o-y to 2.34mt over the first eleven months, and exports to US also fell by -15.1% y-o-y to 1.88mt.

"The weak yen helped a lot, but volumes show there is a genuine recovery in exports," said Shuji Tonouchi, a senior market economist at Mitsubishi UFJ Morgan Stanley Securities. The yen has fallen further in December, and is now within distance of a 10-month low.

Japanese steel imports meanwhile were up 0.8% on-year to 7.39mt over January to November.