Japan’s Crude Steel Production may Increase; Exports may Fall in Q4 2017 – METI

Japan’s crude steel production may increase during Oct-Dec 2017, owing to strong domestic demand, according to Japanese ministry of economy, trade and industry.

Japan’s crude steel output is expected to rise 0.4% in the October-December quarter from a year ago to 26.51MnT, the country’s trade and industry ministry said on Tuesday.

Demand for steel products including those for export in the October-December quarter is expected to drop 1.6% to 23.87MnT from a year earlier, the ministry said, citing an industry survey.

Exports are expected to decline 5.4% over the period, the ministry said.

Outline of METI’s Report

Domestic demand: (Construction) Increase in civil engineering division due to seasonal factors, due to increase in the previous term. Despite the expected decrease in demand for residential buildings due to the decline in the construction of rental houses in the construction division, we are expecting a moderate increase in private capital investment such as the redevelopment of the metropolitan area and properties related to the Olympics, slightly higher than the same period last year.

(Manufacturing Division) Steady growth in new car sales in Japan and steady demand for automobiles for Asia etc. are anticipated. Despite a decline in demand for shipbuilding due to excessive shipbuilding and sluggish bulk market conditions, demand for construction machinery and transportation machinery is expected to recover and demand for automobiles is expected to be strong.

Steel export: Exports of steel increased slightly, due to steady demand for automobiles for Asia, etc. and demand for construction machinery. Decreased in comparison with the same period last year.

Trends in Crude Steel Production (Quantity in thousand tons)

Source: Ministry of Economy, Trade & Industry, Japan