The Japanese Ministry of Trade (METI) has forecast that the country’s crude steel output in the January-March period of 2024 will increase by 1.7 percent year on year to 21.98 million mt, marking a 1.7 percent decrease quarter on quarter, according to a report by Reuters. In the January-March period of 2023, Japan’s crude steel output totaled 21.62 million mt.
Speaking at a press conference, Daisuke Matsuno, director of the METI’s metal industries division, stated, “Steel output will increase as solid demand from automakers is anticipated to offset sluggish demand from other manufacturers and the construction sector. But there are concerns that the weakening European economy and stalled economic recovery in China could weigh on steel demand in industrial machinery.” Regarding his concerns about China’s growing steel output and exports, “Exports of specialty steel products will likely pick up, but those of ordinary steel products are expected to decrease amid strong exports from China where the supply-demand balance is deteriorating,” Matsuno said.
In the January-March quarter of 2024, demand for Japanese steel products from both domestic and export markets is forecast to decrease by 0.5 percent year on year to 19.91 million mt, while finished steel exports are predicted to rise by 1.4 percent year on year.
According to Japan Iron and Steel Federation’s (JISF) latest forecast, however, while domestic demand is expected to recover in 2024, Japan’s crude steel production will move sideways compared to 2023.