Japan's crude steel output expected to decline by over 2%, y-o-y, in July-September - METI

Japan's crude steel production is estimated to decline by 2.4% y-o-y to 23.49 million tonnes (mnt) in July-September 2022, according to the latest release by Ministry of Economy, Trade and Industry (METI). Notably, crude steel output has decreased for three consecutive quarters.

Matsuno Daisuke, Metal Manager, METI, expects demand to improve despite challenges such as parts supply restrictions and the resurgence of new COVID-19 infections.

Steel demand is estimated to increase by 1.7% y-o-y to 20.96 mnt in the July-September quarter. Domestic demand for ordinary steel is expected to increase by 5% to 11.12 mnt, while exports are expected to decline by 6.6% to 5.5 mnt.

Domestic consumption of ordinary steel has increased compared to the previous quarter. Automotive steel consumption is estimated to increase by 13% q-o-q to 2.51 mnt due to the recovery in finished vehicle production despite restrictions related to supply of parts.

Demand from shipbuilding is expected to rise y-o-y amid improved construction activities. However, industrial machinery consumption is likely to fall q-o-q by 4% in the July-September period.

Note: The article has been published in line with article exchange agreement with Japan Metal Daily.