Japan: Crude steel output declines by 1.7% y-o-y in Jun'23

Japan's crude steel output stood at 7.33 million tonnes (mnt) in June 2023, down 1.7% y-o-y, according to data released by the Japan Iron and Steel Federation (JISF). This marks the 18th consecutive month of y-o-y decline. Moreover, output fell by 4% m-o-m compared to 7.6 mnt in May 2023. Steel demand has been recovering in some areas, such as automobiles, but has lacked momentum in general, as seen in sluggish sales for construction.

In June, production of converter steel increased for the first time in 18 months, while production of electric furnace steel, which is mainly used for construction, was sluggish. Daily production in June was 244,000 tonnes (t), down 3,000 t m-o-m from May 2023.

The cumulative production volume in January-June this year was 43.83 mnt, down 4.7% from the same period last year. Looking at production volume by furnace, production volume of converter steel increased by 0.4% y-o-y to 5.321 mnt, while production volume of electric furnace steel decreased by 6.6% y-o-y to 2 mnt.

Production volume by steel type was 5.681 mnt, down 1.3% y-o-y, and production of specialty steel was 1.644 mnt, down 3.0% y-o-y. Both decreased, but the decline in ordinary steel narrowed to the 1% level.

Production volume of hot-rolled steel products increased by 0.6% to 6.48 mnt. Production of special steels decreased slightly y-o-y, but sales of ordinary steel increased for the first time in 13 months.

Outlook
The decline in crude steel production is a sign that the Japanese economy is still struggling. While some sectors are showing signs of recovery, overall demand remains weak. This is likely to continue to weigh on the steel industry in the coming months.

Note: This article has been written in accordance with an article exchange agreement between Japan Metal Daily and SteelMint.