Japanese steel production continues to decline

The latest statistics released by the Japan Iron and Steel Federation (JISF) report a drop in crude steel production in the country during February this year. The decline in production is primarily due to a weakening of domestic demand and a decline in exports.

Steel production in the country in February 2015 was 8.43 million tons, which indicates a slight fall of 0.2 percent on an annualized basis. However, steel output during the month fell by almost 7 percent from the previous month. Japanese steel production in January this year reached a total of 9.03 million tonnes. The cumulative steel output in the first two months of 2015 amounted to 17.46 million tons, down 2.2 percent compared to the output in the corresponding two months last year.

According to industry sources, the slowdown in the country's economy negatively affected Japanese domestic demand for steel. Steel exports from the country decreased by 3.1 percent during 2014 and amounted to a total of 42.09 million tons. Exports remain weak despite modest increases recorded in January this year. Shipments to Southeast Asia also remain low.

The country's metallurgists are forecasting a further decline in Japanese production during the year. According to experts from Nippon Steel and Sumitomo Metal Corporation (NSSMC), the country's annual steel production will decrease compared to the previous year. The company estimates that the country's total steel output in 2015 will fall below 110 million tonnes. Japanese steel output during 2014 amounted to 111 million tons.