Japan's crude steel production may drop 8.5% y-o-y in Q4CY22: METI

Japan's crude steel production is estimated to decline by 8.5% y-o-y to 22.13 million tonnes (mnt) in the October-December quarter (Q4CY22), according to the country's Ministry of Economy, Trade and Industry (METI).

Meanwhile, production is expected to rise by 1.4% q-o-q compared to 22.44 mnt in the July-September period.

Some of the automakers have revised production plans downwards, although there are signs of improvement in semiconductor procurement.

This is the fourth consecutive quarter of y-o-y decline in crude steel production. However, production volumes are expected to reach 22 mnt in the October-December period.

Demand from various sectors

Demand from automobiles is expected to recover while demand for industrial machinery is likely to remain stable. However, the overall recovery is expected to be gradual, as demand in the civil engineering and construction sectors remains low.

METI expects production of ordinary steel products to increase by 150,000 t from blast furnaces and 330,000 t from EAFs for the domestic market. On the other hand, output is expected to rise by 310,000 t for blast furnaces and 40,000 t from EAFs for exports compared with the previous fiscal year.

In addition, production of H-beams is expected to increase by 11% to 990,000 t, while output of small bars may rise by 7% to 1.96 mnt. Compared to the same period a year ago, sales of H-beams are expected to increase by 5%, while sales of small bars are likely to decrease by 4%.

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