–Import Gain Remains High on Energy, Leading to 6th Straight Trade Deficit
–Exports to China Slip Leading to Lunar New Year Holidays
–Auto Shipments Slide After Recent Pickup on Easing Supply Bottlenecks
By Max Sato
(MaceNews) – Japanese exports rose from a year earlier for the 11th straight month in January but at a slower pace, led by reopening demand for iron and steel and electronic parts, as seen in recent months, data released Thursday by the Ministry of Finance showed.
Rising costs of oil and gas, compared to a year before, led to the sixth consecutive monthly trade deficit in January and the negative balance widened from December.
Rush shipments of goods ahead of the Feb. 1 lunar new year and suspended cargo handling and customs clearance in some Asian countries in late January during new year holidays are believed to have caused a distortion to export and import patterns.
The key points from the MOF’s Trade Statistics:
* Exports rose 9.6% in January for the 11th straight year-on-year rise after rising 17.5% in December and returning to a double-digit percentage gain of 20.5% in November. Export volumes and values have already recovered to pre-pandemic levels, limiting the scope for a sharply bigger rise from a year before.
* The increase was led by demand for iron and steel, mineral fuels and semiconductors among other electronic parts. Overall shipments of automobiles slid 0.1% on year in January after gaining a revised 17.6% in December and rebounding 4.1% in November. Auto exports to the US, the key market, edged down 0.2% after rising 11.9% and December and falling 11.5% in November.
* On a seasonally adjusted basis, exports edged up 0.1% in January from the previous month, the MOF said. The Bank of Japan’s real export index dipped a seasonally adjusted 1.2% on month in December for the first drop in two months, led by a sharp drop in capital goods shipments and despite a continuing pickup in auto exports. It followed a 9.1% surge in November and a 0.5% fall in October. The BOJ will release its real trade indexes for January at 1400 JST (0500 GMT/0000 EST) Thursday.
* Imports rose 39.6% on year in December, the 12th straight rise after gaining 41.1% in December, led by rising oil and gas prices. Vaccine imports from Europe and the US continued to show year-on-year gains.
* The trade balance came to a deficit of Y2.19 trillion in January, marking the sixth straight month of a shortfall after a deficit of Y583.3 billion (revised from Y582.4 billion) the previous month and compared to a deficit Y327.2 billion in January 2021. The gap was much wider than the consensus call of a Y1.58 trillion deficit.
* Exports to China, the top export destination for Japan, fell 5.4% from a year earlier in January for the first drop in 19 months after rising 10.8% in December. The decrease was led by lower shipments of plastics, engines and optical instruments while demand for electronic parts and audio-visual equipment was strong. China’s economy is slowing but January’s export drop could be attributed to irregular shipments leading to the lunar new year.
* Japanese exports to Asia as whole marked the 11th straight y/y rise, up 6.3%, after climbing 16.6% in December.
* Exports to the U.S., another key market, recorded the fourth straight year-on-year rise, up 11.5% in January, after rising 22.1% in December. The increase was led by chip-making equipment, construction and mining machines and drugs.
* Shipments to the European Union posted the 11th straight year-on-year increase, up 16.1% on year after gaining 9.7% in December, backed by strong demand for optical instruments, iron and steel and drugs. Auto exports declined.