Japan’s crude steel production for April-June is expected to fall 2% y-o-y to 21.7 million tonnes (mnt), marking the second quarter of decline, according to a Ministry of Economy, Trade and Industry (METI) production plan released on 10 May. The decline is attributed to weakening demand for steel products both domestically and internationally, causing steelmakers to grow cautious about potential risks.
Production plan for special steel on 3 sides
Crude steel production is expected to be 21.7 mnt, aligning with the METI’s forecast. This plan represents a 2% y-o-y decrease compared to the same period of the previous year. However, compared to the previous quarter, production is expected to increase by about 300,000 tonnes (t). This increase is partly due to increased production by electric furnace manufacturers in anticipation of summer production cuts.
Steel demand remains weak
The demand for steel materials has not changed significantly, according to the METI. However, there are still weaknesses in key sectors like construction and automobiles. This weakness is also seen overseas in the demand for automobiles and construction/industrial machinery. The latest plan appears to reflect this subdued demand environment.
H-shaped steel, small bar demand
H-beam and small steel bar production are ramping up this quarter (April-June). The plan targets 850,000 t of H-beams and 1.9 mnt of small steel bars. This represents a significant increase from the previous fiscal year (January-March) with 30,000 t more H-beams and 120,000 t more small steel bars are expected to be produced.
Note: This article has been written in accordance with an article exchange agreement between Japan Metal daily and BigMint.