Japan's crude steel production expected to drop y-o-y in Q2CY23: METI

Domestic crude steel production in Japan is expected to decline to 21.92 million tonnes (mnt) in the April-June period (Q2CY23), according to the country's Ministry of Economy, Trade and Industry (METI). The production volume is anticipated to drop for the sixth consecutive month on a y-o-y comparision with an expected decline of 4.6% y-o-y in Q2CY23. On the other hand, it is expected to inch up by 1.5% compared to the preceding quarter's 21.59 mnt due to the recovery in domestic demand.

Furthermore, the country's crude steel production has remain below 22 mnt for the fourth consecutive quarter.

Crude steel production in FY22, which includes January-March (estimate), is expected to be 87.81 mnt, down 8% from FY21, which was around 95 mnt.

Demand from various sectors:
The demand for steel products in Q2CY23 remains unchanged at 19.97 mnt, down 2.4% y-o-y and down 0.5% from Q1CY23.

Demand from automobiles, shipbuilding and industrial machinery is expected to increase slightly while demand from construction and civil engineering is likely to decline y-o-y.

"Although demand for steel materials continues to pick up, downside risks remain, such as continued difficulties in procuring semi-conductors in the automotive industry," said Daisuke Matsuno, manager of the Metals Division of METI.

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