Japan's crude steel production declines y-o-y in FY'23: JISF

Japan Iron and Steel Federation (JISF) reported a decline of 1.1% y-o-y to 86.83 million tonnes (mnt) in domestic crude steel production for the financial year 2023 (FY'23) compared to the previous year. This marked the second year in a row that production fell short of 90 mnt, due to weak demand for steel products both domestically and internationally.

JISF expects production in FY'24 to remain around the same level as FY'23, presenting an ongoing challenge for steelmakers. Since the coronavirus pandemic began, crude steel production has dipped below 90 mnt for three years- FY'20 and FY'22, now again in FY'24. This marked only the third time since 1973 that production has fallen this low. There was a brief recovery in FY'21, reaching 96 mnt, but overall, production remained historically low.

Breakdown of FY'23 production

In FY'23, both converter and electric furnace steel production have declined compared to the previous year. This marked the second consecutive year of decrease for both production methods. Converter steel production dipped by 0.7% y-o-y to 63.85 mnt, while electric furnace steel production saw a steeper decline of 2.3% y-o-y reaching 22.98 mnt. The proportion of electric furnace steel production in FY'23 was 26.5%, a slight decrease from 26.8% in FY'21.

• Converter, Electric Arc Furnace (EAF) steel production declines: Production of converter steel and electric arc furnace steel have decreased for the second year by 0.7% and 2.3% y-o-y reaching 63.85mnt and 22.98 mnt, respectively.
  
  
• Electric Arc Furnace (EAF) share dips: The ratio of EAF steel dipped to 26.5% from 26.8% in FY'22.
  
  
• Ordinary, specialty steel see decline: Production of ordinary steel and specialty steel both decreased by more than 1% to 67.3 mnt and 19.53 mnt.
  
  
• Hot-rolled steel production down: Production of hot-rolled steel decreased for the second consecutive year to 76.78 mnt, despite increases in sales of HRC and galvanised steel sheets. Conversely, sales of H-beams and thick sheets declined.
  
  

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