According to the head of Japan’s JISF (Japan Iron and Steel Federation) country’s crude steel output is likely to increase in 2019 amid strong local demand from construction segment ahead of 2020 Tokyo Olympics.
In 2018, Japan lost its second spot to India as world’s second largest steel producing country as its crude steel output slipped by 0.3% y-o-y basis to 104.3 MnT whereas that of India stood at 106.5 MnT.
The natural disasters in the second half of 2018 including torrential rain in western Japan during July, Typhoon Jebi in September and the earthquake in Hokkaido also in September, are being understood to affect the country’s production during the year. Apart from this the facility problems at the mills late last year also forced the overall production to be lower.
By product, the output of hot-rolled coil in 2018 was 41.1 MnT, down 3.7% in the same period and small bar production was 8.57 MnT up 0.8% year on year. Production of H-beams was 4.02 MnT, up 4.1% in the same period.
However, in 2019 Chairman of JISF is hopeful of an increase in country’s output in the absence of major impact from natural disasters.
The imposition of tariffs by U.S. on steel imports last year have impacted Japan’s steel exports in 2018. The same has dropped 4.2% y-o-y in 2018 to 36.53 MnT, sliding for a fifth straight year, with shipments to the United States plunging 19.6%. However, for 2019, JISF chief has forecasted that exports will remain flat.
In terms of demand, World Steel Association (WSA) has predicted that the steel demand in Japan will remain stable due to supportive factors on investment (record-high corporate earnings, the continuation of monetary easing, demand associated with the Tokyo Olympics and the increasing need for labour-saving investments).
Leave a Reply