Japan's ordinary steel demand rises marginally y-o-y in May'24

Japan Metal Daily: Japan's domestic orders for ordinary steel products inched up in May 2024, increasing by just 0.2% y-o-y to reach 2.782 million tonnes (mnt), according to data released by the Japan Iron and Steel Federation (JISF) on 16 May. While demand from both the construction and manufacturing sectors showed little change, the automotive industry, a key component of manufacturing, experienced a double-digit decline in orders.

Decline in auto sales

Production for the manufacturing industry continued its downward trend, slipping 0.3% y-o-y to 1.156 mnt. This marks the fourth consecutive month of decline. The automotive sector experienced the most significant impact from the downturn, witnessing a 10.7% y-o-y decline in sales to 539,000 tonnes (t). The industrial machinery sector also faced challenges, recording a 13.4% y-o-y decline in exports.

Production for construction industry

Construction production held steady at 706,000 t. The construction and civil engineering sectors continued to struggle, showing no signs of improvement. Sales to dealers, primarily for construction, rose slightly by 1% to 919,000 t.

Export orders climbed 4.8% y-o-y to 1.889 mnt. Overall, total domestic and export orders grew by 2% y-o-y to 4.671 mnt.

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