Japan's crude steel output drops 3% y-o-y in Apr'23

Japan's crude steel output stood at 7.24 million tonnes (mnt) in April 2023, down 3.1% y-o-y, according to data released by the Japan Iron and Steel Federation (JISF). Also, output declined by 3.3% m-o-m compared to March.

Factors affecting production

The demand for steel products in Japan has declined and steelmakers are not active in production activities. This is partly due to slow growth in demand for exports.

However, domestic demand for steel products is recovering moderately, but there is still a lack of excitement in general. This is because the supply chain of the automobile industry is facing delays and demand for exports has been sluggish due to softening of steel prices in the Asian market.

Production volumes by furnace

In April, production volumes of converter steel fell by 3.4% y-o-y to 5.274 mnt as the production activities of blast furnace manufacturers have not yet recovered fully.

Electric furnace steel production fell by 2.4% y-o-y to 1.965 mnt.

Hot-rolled products

Production of hot-rolled steel products decreased by 6.4% to 6.212 mnt. Of these, sales of ordinary steel products decreased by 4.4% to 4.99 mnt, while special steel products decreased by 13.8% to 1.217 mnt.

Conclusion

Production in the world's third-largest steel producing country has been on a downtrend since last year as global chip shortage and COVID-19 lockdowns in China repeatedly delayed a recovery in output by Japanese automakers. In addition, weaker prices in overseas markets amid sluggish demand in China is denting Japanese steelmakers' appetite for exports.

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