September 06, 2008

Japan\'s ferromoly imports from Chile increases due to FTA

According to data from Japanese customs, Japan's imports of ferromolybdenum from Chile almost doubled year on year in the January to October 2007 period, after the launch of a free trade pact between the two countries on September 3rd 2007.

The data showed that Japan imported 970 tonnes of ferromoly from Chile during the period, up from 580 tonnes a year ago. It added that in October alone, Japan imported 140 tonnes from Chile, which accounted for more than half of the country's total ferromoly imports of 266 tonnes.

During the January to October 2007 period, Chile's share accounted for 38% of Japan's ferromoly imports, second after China holding a larger 45% share.

Japanese traders, however, said Chile is certain to emerge as the top ferromoly exporter to Japan in 2008 as several steelmakers have signed annual contracts with a Chilean producer late this year. Steelmakers were attracted by the removal of 3% export tariff charged on Chilean origin ferromoly, as a result of the free trade pact.