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Japan's crude steel production to increase slightly in FY'25: JISF

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BigMint Bureau

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26 Dec 2024, 17:02 IST

Japan's crude steel production to increase slightly in FY'25: JISF

Crude steel output may be within 85-90 mnt

Growth linked to rebound in domestic demand

Japan Metal Daily: The Japan Iron and Steel Federation (JISF) has announced its demand forecast for FY'25, predicting a slight increase in crude steel production compared to FY'24. This growth is attributed to a moderate recovery in domestic demand, which is expected to halt the downward trend in steel production.

According to the forecast, crude steel production in FY'25 is expected to surpass the 85 million tonnes (mnt) produced in FY'24. However, it is unlikely to reach the 90-mnt level. The federation cites the Chinese economy and trade policies under the Trump administration in the United States as risk factors that may impact the steel industry in the next fiscal year.

Domestic demand is expected to drive the increase in production, with sales for construction expected to rise slightly. The construction and non-residential sectors are also projected to experience moderate growth, despite ongoing labour shortages. Sales to the manufacturing industry are predicted to remain flat, while the shipbuilding and machinery sectors are likely to see an increase.

Exports are forecast to remain at the same level as the previous year, although the overseas market may be subject to significant fluctuations depending on China's steel export trends and the Trump administration's trade policies. The Japan Iron and Steel Federation considers overseas developments to be a risk factor and has emphasised the need for close attention to international trends in the coming year.

In a press conference, Japan Steel Chairman Tadashi Imai noted that while a slight increase in production is expected in FY'25, the federation expects that crude steel production will likely remain around 80 mnt in the future, depending on the scale of direct and indirect exports.

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