In April, Japan’s crude steel output including both carbon and special steel had declined for the fourth month, down 4.4% on year to 7.47 million tonnes, according to the latest data released by Japan Iron & Steel Federation (JISF) on May 24.
Japan’s April crude steel output was also down 6.1% on month, and that over January-April totaled 30.48 million tonnes, down 3.3% on year. Among the total in April, blast furnace mills produced 5.46 million tonnes, down 5.6% on year and 7.3% lower on month, and the balance by electric-arc-furnace mills, declined by 1.3% on year and down 7.3% on month.
A Tokyo-based flat steel trader explained that Japan’s April steel output usually declines on month because domestic mills would usually ramp up their output in March towards the end of the fiscal year. “And the decline was also partially due to the slower steel consumption by Japan’s auto sector,” the trader added.
By product, most of sheet output declined in April, with hot-rolled coils (HRC) as Japan’s largest production item declining by 7.2% on year or 10.5% lower on month to approximately 1.97 million tonnes.
A sales official from an integrated mill in Tokyo attributed the on-year decline in sheet output to the high base a year ago, while the slower improvement in Japan’s auto output has also forced domestic mills to lower their sheet and special steel output.
“With Japanese auto demand becoming firmer, we expect the auto output to grow, even though we’re uncertain about when as Japanese automakers have been adjusting their production plans every month with the delay in component deliveries,” the official said. “So we will monitor the movement cautiously and will keep our production to match actual demand,” he added.
Written by Yoko Manabe, yoko.manabe@mysteel.com
Note: This article has been published in accordance with an article exchange agreement between MySteel Global and SteelMint.
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