Steel production forecast in Japan in January-March will increase by 1.7%

Japan's steel production is forecast to rise 1.7% year on year in the first three months of 2024 due to healthy demand from automakers, the Ministry of Economy, Trade and Industry (METI) said on Tuesday.


That would bring the world's third-largest steelmaker's annual output for the fiscal year to March 31 to 88.10 million metric tons, up 0.3% from a year earlier.

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“Steel production will increase as robust demand from automakers is expected to offset sluggish demand from other manufacturers and the construction sector,” Daisuke Matsuno, director of METI's steel industry division, said at a news conference.

“But there are concerns that the weakening European economy and slowing economic recovery in China could impact demand for steel in industrial equipment.”

The ministry estimates steel production in the January-March period will be 21.98 million tonnes, up from 21.62 million tonnes a year earlier, although it will fall 1.7% from the current quarter.
Exports are forecast to increase by 1.4%.

“Exports of special steel products are likely to increase, but exports of general steel products are expected to decline amid strong exports from China, where the supply-demand balance is deteriorating,” Matsuno said.

Nippon Steel Executive Vice President Takashi Hirose also expressed concern about the growth in steel production and exports in China.

"China's steel production remains strong and we should expect it to continue," he said at a separate news conference, adding that Japan needs to keep a close eye on steel imports as October's figure was the highest since around March 2014.

Japan's imports of conventional steel products rose 20.8% in October, marking the 11th straight monthly increase, according to the Japan Iron and Steel Federation.