Japan's crude steel production to increase in Q3CY23: METI

The Ministry of Economy, Trade and Industry (METI) of Japan announced on 8 August that crude steel production in the country is expected to increase by 1.9% y-o-y to 22.23 million tonnes (mnt) in the July-September period (Q3CY23). This would be the first y-o-y increase in seven quarters, since the October-December 2021 period, as per a Japan Metal Daily report.

The increase in production is being driven by a moderate recovery in demand for automobiles, as well as higher exports. However, METI warned that there is still an uncertainty about the future, particularly for exports, due to the economic slowdown in China.

In addition to crude steel, production of ordinary steel products is also expected to increase by 4.9% y-o-y to 19.42 mnt. Of this, production for domestic use is expected to increase by 2%, while production for export is expected to increase by 16.6%.

Production of construction steel is expected to decrease slightly y-o-y, to 880,000 tonnes (t) for H-beams and 1.75 mnt for small steel bars. This is due to the ongoing weakness in the construction sector.

Overall, the outlook for Japan's steel industry is positive, with production expected to increase in the July-September period. However, there are still some risks, particularly on the export front, that could dampen the growth.