TOKYO: The value of Japan’s bilateral trade with the GCC countries contracted 3.82 percent in 2014 to $164.76 billion, compared to $171.31 billion in 2013, due mainly to an estimated 4.28 percent average fall in the price of crude oils that Japan imported from the GCC countries in 2014.
The average price of crude oils fell to $104.76 per barrel in 2014, from $109.44 per barrel in 2013. The effect of the depreciation in the value of Japanese yen against the US dollar, estimated to be slightly more than eight percent in average, during 2014, has also reflected in the reduced value of bilateral trade. Though Japan’s trade deficit with the GCC countries is huge, the decline in crude oil price is gradually bringing down the deficit. In 2014, the deficit was brought down by 9.14 percent to $114.9 billion, compared to $126.5 billion in 2013.
Japan’s exports to the GCC countries showed a strong recovery in 2014 supported by increased demand for machinery and equipment, and iron and steel products. The export value of general machinery surged 24 percent to $3.45 billion and that of electrical machinery 23.7 percent to $1.2 billion in 2014. Export of self-propelled dozers witnessed an increase of 46.5 percent in value to $564.4 million in 2014 from $385.3 million in the previous year. Similarly, export of air pumps rose by 47.6 percent to $270.7 million and steam turbines by 110.7 percent to $198.1 million.
Export of machinery for temperature changing and steam generating machinery jumped 5 to 6 times in 2014, compared to the previous year. Export of iron and steel products, such as tubes and pipes, surged by 32.2 percent to $1.58 billion. Export of beverages, including mineral and aerated waters registered a considerable increase of 35.6 percent to $45.1 million in 2014 from $33.3 million in 2013.
Motor vehicle exports, covering almost 60 percent of Japan’s total exports to the GCC, increased by 8.77 percent to $14.79 billion, of which, passenger motor cars above 3000 cc engine capacity rose the most, by 10.7 percent, to $7.6 billion. GCC countries remained to be one of the top export markets for motor vehicles from Japan.
The import value of crude oils, the major item of Japan’s imports from the GCC, which covered 72.61 percent of the total imports from the block, fell by 8.96 percent to $101.53 billion in 2014, from $111.52 billion in the previous year.
In terms of volume, Japan’s crude oil import declined by 4.89 percent to 969.21 million barrels in 2014, against 1,019.04 million barrels in 2013. Japan’s total crude oil import in 2014, from the world over, was estimated at 1,253.9 million barrels, which was 5.62 percent lower, compared to the volume in 2013. GCC countries together met 77.30 percent of Japan’s crude oil requirement in 2014, 0.78 percent higher compared to the supply in 2013.
Saudi Arabia topped the list of crude oil suppliers to Japan in the world, supplying 33.26 percent of Japan’s crude oil requirements in 2014, followed by the United Arab Emirates with a supply share of 24.36 percent. Qatar was the 3rdlargest supplier of crude oils to Japan, covering 11.14 percent of Japan’s total requirement of crude oils.
Japan’s import of petroleum gases from the GCC declined marginally in terms of value due to a slight decline in the price of gases. Japan imported 34.06 million tons of petroleum gases from the GCC countries in 2014 at an average price of $845.89 per ton, compared to 34.97 million tons at $848.17 per ton in 2013.
Qatar was Japan’s largest supplier of petroleum gases in the world, supplying over 20 percent of Japan’s total gas requirement in 2014. UAE stood 4th in gas supply to Japan, with a share of 8.67 percent of Japan’s total gas imports.
Japan’s import of aluminum from the GCC countries surged by 44.77 percent to $1,095.00 million in 2014 compared to $756.88 million in the previous year. Most of the additional supply came from the UAE, from where, the imports grew by 41.37 percent in 2014.
UAE was the largest supplier of aluminum to Japan among the GCC countries, and the 4th largest supplier in the world with a share of 8.28 percent of Japan’s total aluminum imports. Aluminum is mostly imported to Japan as raw materials in the form of ingots.
