Japan: Crude steel production falls by 4.2% y-o-y

Japan Metal Daily: Japan's crude steel output continued its downward trend in June, dropping by 4.2% y-o-y to 7.02 million tonnes (mnt), marking the fourth consecutive month of decline. According to the Japan Iron and Steel Federation's (JISF) report on 22 July, production at blast furnaces slowed due to weakening demand for steel products. Cumulative steel production for the first half of the year totalled 42.7 mnt, a 2.6% y-o-y decrease compared to the same period in 2023.

Daily production in June reached 234,000 tonnes (t), a modest increase of approximately 3,000 t m-o-m compared to May. However, the annualised production rate of roughly 85 mnt remains low.

Steel production from both converter and electric furnaces declined in June compared to the same month last year. Converter steel output dropped 3.7% y-o-y to 5.125 mnt, marking the fourth consecutive month of decrease. Electric furnace steel production also fell by 5.5% y-o-y to 1.897 mnt for the third month in a row.

Anticipating lower production during the summer months, electric arc furnace-based producers have built their inventories compared to May.

Production of both ordinary and special steels declined for the fourth straight month. Ordinary steel output dropped 3.6% y-o-y to 5.48 mnt, while specialty steel production fell 6.3% y-o-y to 1.54 mnt. Sluggish demand for automobiles contributed to weak sales of specialty steel. Overall steel production, specifically hot-rolled steel, decreased by 8.1% y-o-y to 5.987 mnt.

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