Japan: METI predicts increase in crude steel production by 1.5% y-o-y for Q1CY'24

Ministry of Economy, Trade and Industry (METI) has released its production plan for the first quarter of 2024 (Q1CY'24), predicting a 1.5% y-o-y increase in crude steel production for Q1CY'24, reaching 21.95 million tonnes (mnt). This marks the second consecutive quarter exceeding y-o-y production, but falls short of 22 mnt for the third quarter in a row.

Steel Products Production

In Q1'24 steel production reached 19.08 mnt, marking a 1.5% increase y-o-y and a 2.1% increase compared to the previous quarter (October-December 2023). This output included 15.07 mnt of ordinary steel and 4.01 mnt of special steel.

Stagnant steel demand

METI reports that the steel products market remains sluggish, with little sign of improvement. While the automotive sector showed signs of recovery, concerns about production cuts by some manufacturers cast a shadow over its future. Construction growth is also expected to remain slow due to labor shortages and rising material costs.

Production plan

The steel production plan for the January-March period anticipates producing 810,000 tonnes (t) of H-beams and 1.66 mnt of small steel bars. This represents a slight decrease compared to the previous fiscal year (October-December 2023), with H-beam production down by 10,000 t and small steel bar production down by 190,000 t.

Outlook

• Japanese steel industry is cautiously optimistic.
  
  
• While there are signs of recovery in some sectors, overall demand to remain weak.
  
  
• Production is expected to increase slightly in the short term, but the long-term prospects are uncertain.
  
  

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