Japanese domestic steel orders were down sharply from December and reduced markedly year-on-year in January, according to the Japan Iron and Steel Federation (Jisf). The Japanese steel market’s overall outlook remains cautious in 2016, Kallanish notes.

The total steel product orders were 5.54 million tonnes in January, down -5.8% from December and down -2.2% y-o-y. Over April to January, domestic orders amounted to 57.6mt, down -3.2% on-year.

Domestic steel demand decreased -3.4% from December and fell by -4.5% y-o-y. Domestic demand from April to January dipped sharply by -5.7% to 35.3mt. Steel exports increased 2.4% on-year and rose 1.7% to 21.7mt from April to January. This rise only partly offset decreased domestic demand however.

Japanese domestic steel demand is expected to increase in 2016 in an attempt by purchasers to avoid the consumption tax hikes due in 2017. Exports should continue to be weak as Japan struggles to complete in the Asia market, Jisf says.