Japan’s crude steel production is estimated to decline by 4.0% y-o-y to 22.1 million tonnes (mnt) in the January-March quarter (Q1CY23), according to the country’s Ministry of Economy, Trade and Industry (METI).
Meanwhile, production is expected to rise marginally by 0.3% q-o-q compared to 22.03 mnt in the October-December period due to recovery in demand for the automotive industry. However, the supply chain (SC) industry will take time to fully normalise.
In addition, demand for automobiles changes by manufacturer and model, but the impact of semiconductor shortages is diminishing, said head of METI’s metals department
Production volumes are expected to be down by 2.2% q-o-q to 19.98 mnt (down 4.3% y-o-y) in the January-March period, slightly below 20 mnt.
Demand from various sectors:
Demand from automobiles, shipbuilding and industrial machinery is expected to increase slightly while demand for construction and civil engineering is likely to decline y-o-y.
Vehicle production was up by 0.2% y-o-y to 2.33 million units. However, difficulty in procuring parts in the automotive industry is likely to continue, and it will be difficult to increase demand in the Q1CY23 period.
Crude steel production in FY’22 is expected to be around 90 mnt, falling below 100 mnt for the fourth consecutive year.
Note: This article has been written in accordance with an article exchange agreement between Japan Metal Daily and SteelMint.
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