Japan: Crude steel output records 96.33 mn t in Jan-Dec'21

Japan's domestic crude steel production in CY'21 (Jan-Dec'21) increased by 15.8% from the previous year to 96.33 million tonnes (mn t), surpassing the previous year's results for the first time in 7 years since 2014. Reflecting the recovery in demand for steel materials, the production volumes recovered significantly compared to CY'20, when it fell to the 83 mn t levels due to the impact of the Covid-19, as per the announcement made by the Japan Iron and Steel Federation on 21 Jan'22.

The production volume has fallen below 100 mn t, third year in a row on a calendar year basis, but the 96 mn t level can be regarded as practically full capacity.

The breakdown of converter and electric furnace steel

The breakdown of converter steel and electric furnace steel was 71.95 mn t each (up 16.0% from the previous year),and 24.39 mn t (up 15.4% y-o-y), respectively, the first increase in five years for converter steel and the first increase in three years for electric furnace steel. The ratio of electric furnace steel was 25.3% in CY'21 (25.4% in CY'20).

The breakdown of ordinary and special steel

The breakdown of ordinary steel and special steel was 73.91 mn t (up 12.4%, y-o-y) and 22.42 mn t (up 28.6%, y-o-y), respectively in CY'21, with special steel increasing significantly, reflecting a recovery in demand for automobiles. This was the first increase in eight years for ordinary steel and the first increase in three years for special steel.

Hot-rolled steel production, including ordinary steel and special steel, increased by 14% year-on-year to 84.38 mn t in CY'21, the first increase in seven years.

Domestic crude steel production in Dec'21 increased by 5.4% from the same month of the previous year to 7.93 mn t, surpassing the previous year's results for 10 consecutive months. The daily production volume was 2.56 mn t, down 4.5% from the previous month, probably due to the delay in the recovery of demand for automobiles.

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