Japan: Crude steel production drops 2% y-o-y in Sep'23

Japan's crude steel production fell y-o-y for the second consecutive month in September 2023, as the global economic slowdown continues to weigh on demand.

The Japan Iron and Steel Association reported on 23 September that domestic crude steel production in September fell by 1.7% y-o-y to 7.02 million tonnes (mnt). In addition, daily production increased by 3,000 t compared to the previous month, but remained at a low level of about 85 mnt on an annualised basis.

In April-September, crude steel production was 43.76 mnt, down 2.3% y-o-y from the same period of the previous year.

The decline in crude steel production was driven by a decrease in electric furnace steel production, which fell by 6.2% y-o-y to 1.877 mnt. Production volume of converter steel was almost unchanged at 5.144 mnt, up 0.1% y-o-y.

By steel type, production volume of ordinary steel decreased by 1.5% y-o-y to 5.37 mnt and production of special steel decreased by 2.2% y-o-y to 1.651 mnt.

Despite the decline in crude steel production, production of hot-rolled steel increased by 1.3% y-o-y to 6.33 mnt. This suggests that while crude steel production decreased, steel production increased, which is likely due to the liquidation of semi-finished product inventories.

The outlook for Japan's crude steel production remains uncertain, as the global economic slowdown is expected to continue. However, the increase in hot-rolled steel production suggests that there is still some demand for steel products.

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