Japan's Top 7 Commodity Imports
Based on data from OEC, the top seven imported commodities for Japan, with a reported value of $256 billion, account for over 31% of their total imports.
From powering its cities and infrastructure to driving its various industries forward, the top seven imported commodities are the silent engines of Japan's progress. For commodity traders across the world, paying attention to Japan’s macro-economic decisions provides insights into where their economy might be going in the future.
Let's take a look at each of the top seven imported commodities from 2022 (unless otherwise noted for their volume noted by year) that are pivotal to Japan's growth and showcase the goals and needs of Japan in the greater economy.
Crude Petroleum: $86.7B (158.64 Kilolitres)
Crude petroleum is the lifeblood of Japan's economy, with the country spending $86.7 billion on it in 2022, becoming the 5th largest country of imported or crude petroleum in the world. This resource fuels not only vehicles and industries but also plays a crucial role in Japan's energy security. As oil prices are always fluctuating, Japan's reliance on crude petroleum shows the importance of strategic energy planning. The country's heavy dependence on oil imports makes it vulnerable to global market volatility, emphasizing the need for diversification and investment in alternative energy sources.
Petroleum Gas: $64.2B (10.55 million metric tons)
Japan's investment in petroleum gas, amounting to $64.2 billion, again highlights its role as a key energy source. Utilized for heating, and electricity generation, and as a feedstock for the petrochemical industry, petroleum gas is a big player in Japan's energy portfolio. Its significance is set to increase as Japan seeks cleaner alternatives to coal. The shift towards natural gas reflects Japan's commitment to reducing its carbon footprint and embracing a more sustainable energy future.
Coal Briquettes: $53.7B (180.34 million metric tons)
Despite their intentions to shift towards renewable energy, coal briquettes remain a key part of Japan's energy demand, with imports valued at $53.7 billion. As the world’s 2nd largest importer of coal briquettes, they provide a reliable source of power, especially in the face of natural disasters that can disrupt other energy supplies. However, the environmental impact of coal usage is an ongoing concern for Japan's sustainable future.
Refined Petroleum: $18.7B (147.66 million kiloliters in 2023)
Refined petroleum, with an import value of $18.7 billion, is essential for Japan's transportation and industrial sectors. It powers everything from cars to machinery, playing an important role in keeping the nation's economy moving smoothly.
Copper Ore: $12.4B (4,959,310,000 Kg (2021))
Copper ore, with $12.4 billion in imports, is a critical component of Japan's technological advancements. Its conductive properties make it necessary for building electronics, wiring, and renewable energy technologies, reinforcing Japan's position as a leader in innovation and technology. Their investment in copper shows its commitment to technological development and meeting the demands of its highly advanced manufacturing sector.
Iron Ore: $11.3B (104.2 million metric tons)
Iron ore, the foundation of the steel industry, is another key import for Japan, amounting to $11.3 billion. Steel is crucial for infrastructure, automotive manufacturing, and various other industries, making iron ore an essential part of Japan's industrial success.
Platinum: $9.48B (52 tons)
Platinum, with $9.48 billion in imports, is an important element in producing automotive catalytic converters and electronic devices. Its role in reducing vehicle emissions and powering technology is a testament to its importance in Japan's commitment to environmental sustainability and technological innovation.
Japan’s Changing Economy in the Future
Looking towards the long-term future, Japan is known as one of the most rapidly aging and declining populations in the world. As their economy continues to evolve alongside their aging population, their demand for various commodities will continue to change too. It’s important for commodity traders to pay close attention to the changing demands of Japan.
And as the world’s third largest economy after the United States and China, Japan’s top seven imported commodities are shown to be building blocks of its economy and the drivers of its technological advancement. Their large demand for natural resources, such as crude petroleum and natural gas, makes them a crucial player to watch each and every year.
If you’re looking to optimize your commodity trading strategies and understand key market shifts, Kontango offers a cutting-edge platform designed for you to be efficient at your job. With real-time, data-driven trading optimization and innovative tools like market mapping and trade planning, Kontango is your partner in navigating the ever-changing world of commodity trading.
Discover how Kontango can transform your trading experience. Join the waitlist today.