Japan: Crude steel production declines in CY'24 for 3rd consecutive year

• Q1CY'25 projections suggest continued low demand
  
  
• Annual production likely to be below 83 mnt in FY'25
  
  

Japan Metal Daily: Japan's domestic crude steel production decreased by 3.4% y-o-y to 84 million tonnes (mnt) in CY'24, marking the third consecutive year of decline, according to a preliminary report released by the Japan Iron and Steel Federation (JISF). This downturn is attributed to both weak domestic and export demand, which has forced steelmakers to maintain low production levels.

Projections indicate further decline

The production figure for CY'24 is the second lowest since 1970, surpassing slightly the 83.19 mnt produced in 2020 during the COVID-19 pandemic. Looking ahead, projections for the first quarter of CY'25 (January-March) suggest continued low demand, potentially pushing annual production below 83 mnt in FY'25 (April 2024-March 2025).

Production breakdown

In CY'24, production by furnace was 61.96 mnt for converter steel and 22.05 mnt for electric furnace steel. Both types of steel saw a 3.4% decline from the previous year. The electric furnace steel ratio remained steady y-o-y at 26.2%. Ordinary steel production decreased by 3.3% y-o-y to 65.3 mnt, while special steel production declined by 3.9% y-o-y to 18.71 mnt.

Production in Dec'24

Preliminary data indicates that domestic crude steel production in December 2024 totalled 6.907 mnt, marking a 1.1% decline from the same month last year. Cumulative crude steel production for FY'24 was 62.56 mnt, down by 4.3% y-o-y.

However, if current trends persist, crude steel production in FY'25 is expected to remain at around 82.5 mnt.

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