- January 2025 production down 7% y-o-y
- Electric furnace output declines 11% y-o-y
Japan Metal Daily: The Japan Iron and Steel Federation (JISF) reported a significant drop in domestic crude steel production for January. Output reached 6.787 million tonnes (mnt), a 6.6% y-o-y declined compared to the same period last year. This marks the 11th consecutive month of y-o-y decline, indicating a sustained downturn in the sector. The daily crude steel production also saw a m-o-m reduction, falling to 219,000 tonnes (t) from 223,000 t in December 2024.
Production volume by furnace type
In January, production volume by furnace type showed a decline. Converter steel decreased by 5.2% y-o-y to 5.146 mnt, while electric furnace steel decreased by 10.7% y-o-y to 1.641 mnt. Notably, electric arc furnace steel sales have now declined for six consecutive months, highlighting a persistent weakness in this segment.
Steel type production also decreases
Both ordinary and specialty steel production witnessed declines. Ordinary steel production decreased by 6.1% y-o-y to 5.252 mnt, while specialty steel production fell by 8.1% y-o-y to 1.535 mnt. Similar to crude steel output, both categories have now experienced 11 consecutive months of y-o-y decline.
Steel production, including hot-rolled ordinary and specialty steel, saw a 5.3% y-o-y drop to 6.071 mnt, marking the first decline in two months. Both ordinary and specialty hot-rolled steel segments contributed to this decrease.
Outlook
The Japanese steel industry is navigating a difficult period, marked by persistent production declines and weakening demand. Economic uncertainty, a slump in electric arc furnace steel sales, and global market volatility all pose significant challenges. The recovery depends on a stable global market and possible domestic economic boosts.
Note: This article has been written in accordance with an article exchange agreement between BigMint and Japan Metal Daily
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