–Exports at 2nd Highest Amount After Hitting Record High in March
–Imports at Fresh Record High on Energy, Leading to 9th Straight Trade Deficit
–Exports to China Mark 1st Y/Y Drop in 3 Months on Covid Lockdowns
By Max Sato
(MaceNews) – Japanese exports continued rising sharply from year-earlier levels in April after hitting a record high in March, reflecting global reopening demand for iron and steel and a pickup in auto shipments. But slowing demand and lockdowns in China dented both exports to and imports from Asia’s economic powerhouse, data released Thursday by the Ministry of Finance showed.
Oil and gas prices remained well above year-earlier levels, boosting imports to a yet another record high in April and resulting in the ninth consecutive trade deficit. The depreciation of the yen, reflecting the widening U.S.-Japan interest rate gap, is also keeping imports expensive.
The key points from the MOF’s Trade Statistics:
- Exports rose 12.5% to Y8.08 trillion, the second highest amount on record, in April for the 14th straight year-on-year rise after rising 14.7% to a record high of Y8.46 trillion in March and climbing 19.1% in February. The pace was slower than the median forecast of a 13.8% gain. Export volumes dipped 4.4% after falling 1.5% in March, rising 2.7% in February and falling 4.0% in January.
- The increase was led by demand for iron and steel, mineral fuels and automobiles. Exports of semiconductor-producing equipment surged to the European Union but slumped to China.
- Shipments of automobiles rebounded 4.8% (down 11.1% in volumes) on the year in April, as the industry faces protracted supply bottlenecks, after falling 5.2% in March, rebounding 8.3% in February and dipping 1.0% in January. Auto exports to the US, the key market, rose 10.9% (down 6.5% in volumes) after falling 16.7% in March, rising 16.2% in February and slipping 0.2% in January.
- On a seasonally adjust basis, exports rose 1.0% in April from the previous month after rising 1.6% in March. The Bank of Japan’s real export index rose a seasonally adjusted 0.7% on month in March for the second straight rise. It rose 2.2% on quarter in January-March for the first rise in three quarters, recovering from decreases of 0.1% in October-December and 1.9% in July-September. The BOJ will release its real trade indexes for April at 1400 JST (0500 GMT/0100 EDT) Thursday.
- Imports rose 28.2% on year to a record Y8.92 trillion in April, surpassing the previous record high of Y8.87 trillion hit in March. It was the 15th straight increase after a 31.2% gain the previous month, coming in lower than the median forecast for a 35.0% rise. The increase was led by higher prices for crude oil, natural gas and coal as well as the need to import more Covid vaccines from Europe and the US. Import volumes fell 9.0% on year after being unchanged in March and falling 0.9% in February.
- The trade balance came to a deficit of Y839.2 billion in April, marking the ninth straight month of a shortfall after a deficit of Y414.1 billion (revised from Y412.4 billion) the previous month and compared to a surplus of Y226.8 billion in April 2021. The gap was narrower than the consensus call of a Y1.15 trillion deficit.
- Exports to China, the top export destination for Japan, posted the first drop in three months, down 5.9% from a year earlier in April after rising 2.9% in March, surging 25.8% and slipping 5.4% in January (the first drop in 19 months). The decrease was led by chip-making equipment, optical equipment and autos. Shipments of audio and visual equipment rose.
- Japanese exports to Asia as whole marked the 14th straight year-on-year rise, up 10.3%, after increases of 12.4% in March, 25.2% in February and 6.3% in January. The increase was led by iron and steel, mineral fuels and non-ferrous metals.
- Exports to the U.S., another key market, recorded the seventh straight year-on-year rise, up 17.6% in April, after rising 23.8% in March, 16.0% in February and 11.5% in January. The increase was led by automobiles, power generating machines and construction machinery.
- Shipments to the European Union posted the 14th straight year-on-year increase, up 19.1% on year after gaining 16.8% in March, 8.8% in February and 16.1% in January. Demand for chip-making equipment remained strong and the increase was also led by iron and steel as well as optical equipment.
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Contact this reporter: max@macenews.com
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