Japan's crude steel output drops 4.4% y-o-y in Apr-Sep'24: JISF

Japan Metal Daily: Japan's crude steel output decreased by 4.4% y-o-y to 41.84 million tonnes (mnt) in the first half of FY'2024 (April-September), marking the third consecutive year of decline, according to the Japan Iron and Steel Federation (JISF). The decrease was attributed to weak demand for steel products both domestically and internationally.

Cumulative production, monthly trends

The cumulative steel production for the first nine months of the year (January to September 2024) stood at 63.28 mnt, representing a decline of 3.2% y-o-y compared to the same period last year.

Moreover, in September 2024, crude steel production decreased by 5.8% y-o-y to 6.623 mnt, marking the seventh consecutive month of y-o-y decline. Furthermore, the daily production in September stood at 221,000 tonnes (t), which was 1,000 t lower than the previous month. This translates to an annualized production of less than 81 mnt.

If the production level in the second half of the FY'2024 remains at the same level as in September, it will be more than 82 mnt for the full year, which may be lower than 82.78 mnt in FY'2020 during the pandemic.

Steel production by process

The production of converter steel in the first half of FY'2024 declined by 5% y-o-y to 30.85 mnt. Additionally, Electric furnace steel production also decreased by 2.9% y-o-y to 10.98 mnt. As a result, overall steel production reached 36.77 mnt, which represents a 5.6% y-o-y decrease compared to the same period last year.

Outlook

Japan's steel industry is expected to face continued challenges in the short term. A slowdown in construction, manufacturing, and automotive sectors could further dampen demand for steel products. However, a gradual recovery is anticipated if economic conditions improve, demand increases, and producers can adapt to changing market dynamics.

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