The volume of production of steel in Japan in January-March may grow

Japan has been gradually losing ground as the world's second largest steel producer recently, but Japan's crude steel production is projected to rise 0.6 percent in January-March to meet rising demand, the Ministry of Trade and Industry said.

The Ministry of Economy, Trade and Industry (METI) estimates crude steel production reached 26.4 million tonnes in the first three months of 2018, the second consecutive quarterly increase.

According to the ministry, production in October-December amounted to 0.9 percent compared to the same period last year. According to the results of the current fiscal year to March, steel production is estimated to fall by 0.1% to 105.08 million tons, which will be accompanied by an annual increase of 0.9% in the previous year.

“Demand for steel was strong at home and abroad, but Japanese steelmakers were struggling to increase production due to technical issues and longer service times,” Yasuji Komiyama, director of METI's metal division, told a news conference.

JFE Steel, Japan's second-largest steelmaker under JFE Holdings Inc, said it will shut down blast furnace operations at East Japan Works, near Tokyo, in September, from late September until sometime in October due to problems, cutting annual production. 300,000 tons.

Demand for steel products, including exports, is expected to decline 1.4 percent year-on-year to 23.62 million tonnes in January-March, mainly due to weaker exports, the ministry said. ...

Exports are expected to decline 2.8 percent over the period as metallurgists cut exports to prioritize their supplies to domestic customers, the ministry said in a statement.

Japan's crude steel production in the business year starting in April 2018 is expected to rise slightly from the current year due to strong domestic and foreign demand forecast for this month in the industry.