Japan: Sales of thin sheets likely to remain stagnant in next fiscal

The National Coil Center Industry Association (NCCIA), headed by Michiharu Ogawa of Ogawa Shoten, presented their anticipated demand trends for the upcoming fiscal year (January-March 2024) during a hearing held by the Metals Division of Japan's Ministry of Economy, Trade and Industry (METI) on December 11th.

Sales of thin sheets are likely to remain stagnant despite a rebound in the automotive sector. Demand across other industries remains weak, hindering overall growth momentum. Consequently, the company anticipates a decline in shipments for the next fiscal year, falling below both the previous year's figures and the current year's forecast.

Furthermore, NCCIA highlighted the need for "improvement of transaction conditions, including processing wages." President Ogawa urged the METI representative to provide "further guidance from the government so that appropriate transactions can be promoted," citing the slow progress in improving contract negotiations.

The hearing also focused on the rising awareness and concern surrounding logistics issues within the industry. The NCCIA expressed its commitment to "exchanging information and diligently considering appropriate responses".

Further meetings are scheduled with the National Federation of Steel Dealers and the National Thick Plate Sheeting Industry Association on the 13th of December. These discussions are expected to search deeper into the industry's outlook and potential solutions to address the identified challenges.

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