Disappointing trend continues in Japan

Japan cement sales shrank 5.5 per cent YoY in the first month of 2024, marking a continuing trend. Sales were 2.389Mt in January, down from 2.527Mt a year earlier, according to the Japan Cement Association (JCA). Since the mid-2010s sales have been in steady decline and contracted a further 5.6 per cent in 2023 to 35.377Mt from 37.488 in 2022. Lacklustre public sector and civil engineering works, which account for 47 per cent of construction activity, are dragging on demand. The resumption of works postponed due to the COVID-19 pandemic are upside risks.  

Production was 3.331Mt in January, down 9.2 per cent YoY, from 3.67Mt a year earlier. Production dropped 10.4 per cent in 2023 to 47.656Mt from 53.207Mt in 2022. Further falls are likely, with local small- and medium-sized plants reducing operations. Meanwhile, exports continue to fall off a cliff, dropping 8.5 per cent to 0.482Mt from 0.527Mt in January 2023, and plunging 32.3 per cent in 2023 to 6.478Mt from 9.569Mt in 2022.

With urbanisation recorded at 100 per cent in Singapore and Hong Kong, which have in the past together accounted for over 60 per cent of Japanese cement exports, a strong revival in exporting activity is in doubt.