Japan: Crude steel output declines 4% y-o-y in CY’25

• Crude steel output hits lowest level since 1968
• Weak steel demand leads to a decline in output.

Japan Metal Daily: Japan’s crude steel production declined by 4% y-o-y to to 80.68 million tonnes (mnt) in CY’25, marking the fourth consecutive year of decline, as per the Japan Iron and Steel Federation (JISF). The output fell to its lowest annual level since 1968, representing a 57-year low on a calendar year (CY) basis.
The sustained weakness in steel demand, both domestically and internationally, led to reduced production activity across Japanese steelmakers.

Of total crude steel production in 2025, converter steel output dropped by 3.4% y-o-y to 59.83 mnt, while electric furnace steel output fell by 5.5% to 20.85 mnt, with both segments recording their fourth consecutive year of decline. The share of electric furnace steel in total crude steel production stood at 25.8%, down from 26.2% in 2024.

Based on the steel type, ordinary steel production declined by 4.3% y-o-y to 62.47 mnt, while special steel output fell by 2.7% to 18.21 mnt. Both segments recorded declines for the fourth consecutive year. Production of hot-rolled steel products declined by 3.1% y-o-y to 72.12 mnt in 2025.

Moreover, in December 2025, crude steel production fell by 4.8% y-o-y to 6.57 mnt, marking the ninth consecutive month of y-o-y decline.

Outlook

Japan’s steel output is expected to remain constrained amid persistent weakness in domestic and international demand. Moreover, short-term stabilization may occur, but production is likely to remain subdued without a demand recovery.

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