Over April-June, Japan’s crude steel output including both carbon and special steel is estimated to rise 3.5% on quarter to about 20.85 million tonnes, according to the latest release by Japan’s Ministry of Economy, Trade and Industry (METI).
The latest production estimation through a survey conducted by METI among Japanese mills, is 2.1% lower on year, or the second consecutive quarter with on-year decline. But Japan’s finished steel output is estimated to mostly stay at the same level a year ago, the METI data showed.
A Tokyo-based steel trader explained that Japan’s flat supply has been softened with the slower improvement in domestic auto output, so steel producers have been adjusting their domestic supply and planning to allocate more for exports to benefit from the recent depreciation of Japanese Yen.
As for long steel products, Japanese mills are planning to lift their output during the current quarter. “Because they have filled orders by the end of March with active demand on the anticipation of price rise, so they have to deliver those products in the current quarter,” the trader added.
METI only reveals specific production volumes for two products – Japanese mills plan to produce 950,000 tonnes of H-beams over April-June, up 5.3% on quarter and 2.4% higher on year, and 1.95 million tonnes of small bars (most are believed rebars), 5.9% higher on quarter but down 0.6% on year.
“Uncertainties remain such as the impact from the ongoing Russia-Ukraine conflict and logistics disruptions amid the current COVID-induced lockdown in Shanghai. We will monitor the movement cautiously and will make downward adjustments if needed,” a sales official from an integrated mill in Tokyo warned.
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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