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Japan's crude steel production may dip over 1% y-o-y in Oct-Dec'24: METI

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BigMint Bureau

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11 Nov 2024, 17:52 IST

Japan's crude steel production may dip over 1% y-o-y in Oct-Dec'24: METI

Oct-Dec marks 3rd straight quarter of output drop

Weak auto, construction sectors soften steel demand

Japan Metal Daily: Japan's Ministry of Economy, Trade, and Industry (METI) has released its production plan for the October-December 2024 quarter, indicating a projected decline of 1.1% y-o-y to 21.36 million tonnes (mnt) in crude steel production. This marks the third consecutive quarter of decline, primarily attributable to softening domestic and international demand for steel products. As a result, the annualised production rate is anticipated to remain below 85 mnt.

Stagnant domestic demand

According to METI, domestic demand for steel products is expected to remain stagnant in the upcoming October-December quarter. This is attributed to weak performance in the construction and automotive sectors. METI forecasts that this trend is likely to continue, emphasising the importance of monitoring China's supply and demand dynamics.

Weak demand for steel products

The construction sector continues to face challenges, with labour shortages and escalating costs leading to delays in building projects. This, in turn, has dampened demand for steel products. Parallelly, the automotive sector is also experiencing weak demand. In response, steelmakers are maintaining a cautious stance, focusing on production to align with current market demand.

Oct-Dec'24 production plan

The October-December 2024 quarter is set to see steel production of 18.59 mnt, consisting of 14.62 mnt of ordinary steel and 3.96 mnt of special steel. This represents a modest y-o-y increase of 0.8%.

Additionally, Japan plans to produce 9.14 mnt of ordinary steel for domestic consumption and 5.49 mnt for exports. These figures represent increases of 4.6% and 4.1%, respectively, compared to the previous quarter.

In terms of specific products, the country aims to produce 790,000 tonnes (t) of H-beams and 1.74 mnt of small steel bars during the October-December period. This represents an increase of approximately 60,000 t for H-beams and 180,000 t for small steel bars compared to the previous quarter.

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