The number of orders received by Japanese steelmaking plants have increased y-o-y against the backdrop of the decarbonisation movement which is spreading worldwide. Moreover, steelmakers have started adopting coke dry fire extinguishing equipment (CDQ) and the electric furnace route of steelmaking, which is compatible with decarbonisation. This would further enable them to control capital investment.
Also, there is an increase in enquiries for the ‘Eco-Arc’ series of environment-friendly high-efficiency arc furnaces developed by Steel Plantech. It is anticipated that China’s strict environmental regulation would create good demand for CDQ developed by Nippon Steel Engineering.
According to the ‘Actual Situation and Trends of the Engineering Industry’ (Engineering White Paper), the orders with steel and non-ferrous metal plants have registered a growth of 23.8% y-o-y to JPY 268.3 billion ($ 1.84 billion) in FY’21. Out of these, Japan’s sales increased by 18.7% y-o-y to JPY 227.2 billion ($ 1.55 billion) and overseas sales rose by 62.3% y-o-y to JPY 41.1 billion.
Furthermore, in FY’22, Japan’s domestic sales dropped by 5.1% y-o-y and overseas sales fell 22.1% on the year. Meanwhile, it is expected that domestic sales will increase by 13.5% and overseas by 17.6% during FY’23-25.
The orders for iron, aluminium and copper equipment have started coming into Japan. Notably, SMS Group Japan Corporation has received the maximum number of orders since its year of inception.
Note: This article has been written in accordance with the article exchange agreement between Japan Metal Daily and SteelMint.
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