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TEX reported that Japan produced 5,607,000 tonnes of crude special steel in the first half of 2011, down by 9.9% YoY as compared with that of 6,222,000 tonnes in the same period of 2010, and this decline of the output influenced on consumption of molybdenum in the period.

Because of the gigantic earthquake disaster occurred on March 11th 2011 in East Japan, the output of special steel in April decreased by 11.4% from that in March and, therefore, the total production of special steel in Japan for the first half of 2011 had a decline. Consequently, Japan consumed 2,604 tonnes in material of ferromolybdenum in the first half of 2011, which decreased by 3.4% YoY as compared to that of 2,696 tonnes in the same period of 2010.

However, according to the statistics released by the Ministry of Finance, Japan imported 18,977 tonnes in material of molybdenum oxide in the first half of 2011, up by 25.8% YoY as compared with that of 15,888 tonnes in the same period of 2010. Also, Japan imported 1,181 tonnes in material of ferromolybdenum in the first half of 2011, up by 20.5% YoY as compared to that of 980 tonnes in the same period of 2010.

On the other hand, Japan produced 2,660 tonnes in material of ferromolybdenum in the first half of 2011, up by 19.9% YoY as compared with that of 2,218 tonnes in the same period of 2010.

The core sector to consume molybdenum in Japan is the special steel industry but, owing to the natural disaster suddenly arisen, the output of special steel in April was temporarily enforced to be reduced but the purchases of raw materials to be required in April to June 2011 quarter have been already ordered to suppliers and, therefore, domestic production of molybdenum in Japan or imports of molybdenum into Japan are thought to have been not influenced to a considerable extent.