Japan automakers' global output up 3% in July

In July, Japan's eight major automakers produced approximately 2.02 million units across their global plants, marking the first rise after four consecutive months of declines, Mysteel Global calculated based on their latest data. Nevertheless, Japan's domestic auto output continues to be affected by the delay in component deliveries.

Among the total, these automakers' output at their Japanese plants declined 4.5% on year to 657,940 units in July. Though some makers had been able to lift their operations, Toyota Motor, Japan's largest automaker, still had to adjust its output lower because of the delay in component deliveries and it halted some lines in the month when heavy rains hit central Japan.

A Tokyo-based auto sheet trader shared that distribution disruptions caused by the COVID lockdown in Shanghai had been eased completely, so some automakers could be able to lift their operations.

"But Japan's largest supplier - Toyota - had been forced to reduce its output lower, resulting in the decline in Japan's overall auto output," he explained, adding that the decline has narrowed and the country's auto output has been recovering.

"They (automakers) may not start placing new orders for steel soon with their current stock levels, but we expect orders to increase sometime in the second half of the current fiscal year (October-March 2023). And that's why Nippon Steel has restarted its relined blast furnace," he added.

Nippon Steel has reignited its No.3 blast furnace at Nagoya Works in central Japan on August 27. The No.3 BF had been under relining since late January and it was initially slated for reignition from early June, but it was then postponed because of stagnated steel demand from Japan's auto sector and some other domestic manufacturers, as reported.

But a sales official from an auto component maker in central Japan warned that output in August might have become lower, because Toyota was impacted by heavy rains and halted operations in the month.

As for Japanese automakers' output globally, Toyota and some component makers in China had been forced to lower their output because of the planned power outage in some cities over power supply crunch.

"Uncertainties remain and auto output by Japanese makers may not rise rapidly, but it's been improving gradually," the sales official added.

Written by Yoko Manabe, yoko.manabe@mysteel.com

Note: This article has been written in accordance with an article exchange agreement between Mysteel Global and SteelMint.