Japan's crude steel production to increase 4.4% in Q4CY'23: METI

The Ministry of Economy, Trade and Industry (METI) of Japan, has announced its production plan for crude steel for the period of October to December.

The crude steel production is expected to increase by 4.4% y-o-y to 22.36 mnt in the period of October to December (Q4CY'23).

"Although a steady recovery is expected in the automotive sector, it will remain sluggish in the construction sector due to the impact of the extension or cancellation of the construction period of large-scale projects", says METI. Additionally, METI highlights the weakness of the export market, including for automobiles, emphasizing the need to closely monitor developments in external demand.

Despite the annualized rate of 88 mnt, steel demand in Japan is projected to surpass the y-o-y result for the first time in eight quarters, since Q4CY'21. This represents a 3.8% increase compared to the previous fiscal year (July-September), aligning with the demand forecast of 22.33 mnt announced by METI in early October.

9.57 mnt of ordinary steel products were shipped domestically and 5.54 mnt were exported, totalling 15.12 mnt, shows an increase of 2.2% y-o-y.

The production plan of Q4CY'23 includes; 870,000 t of H-beams and 1.76 mnt of small steel bars. As compared to the previous FY'22, H-beams production is increased by 90,000 t, while small rods decreased by 30,000 t.

Moreover, Japan's steel production is expected to fall below 90 mnt for the second year in a row.

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