At the 18th SteelOrbis Steel Conference “New Horizons in Steel Markets” held on Tuesday, November 28, in Istanbul with the attendance of nearly 600 participants, Kazuo Mike Fujisawa, principal of the global business development department at Japan’s JFE Steel Corporation, shared the latest developments in the East Asia market and his outlook for the coming year.
According to Mr. Fujisawa, in 2023, while growth in the global economy is expected to be recorded at three percent, which is slower than last year, the Chinese economy is expected to grow by 5.4 percent. In the first 10 months this year, crude steel production in China increased by 1.3 percent, while the country’s steel exports increased by 35.2 percent, both year on year. As for South Korea, he stated that there has been moderate growth in the country’s GDP, and it is expected to end this year with a rise of 1.4 percent. Also, steel use in the country in 2023 is expected to increase as a result of the steel needs within the scope of the recovery from flood damage in the country and an improvement in the manufacturing sector. In Japan, GDP is expected to increase in the coming years. While auto production has gradually recovered as supply constraints have eased, housing construction and non-residential building construction have been weak due to increased construction costs and a labor shortage. Steel use in the country is forecast to decrease to 53.9 million mt in 2023 and to be recorded at 54.2 million mt in 2024.
The JFE Steel official also shared his company’s strategies and plans for the coming period. He stated that JFE Steel aims to transfer its steel segment to a leaner, robust business structure by shifting the focus from quantity to quality and to achieve world-class profitability per ton accordingly. Also, the company aims to decrease carbon emissions by 18 percent by 2024, by 30 percent by 2030 and to reach carbon neutrality by 2050 as a result of the green transition. He stated, “During the green transition period until 2030, the production of high-quality steel in electric arc furnaces will require high-grade direct-reduced iron. However, supplies are limited”. In this context, he said that JFE Steel, Emirates Steel (UAE) and ITOCHU have signed an agreement to conduct detailed feasibility studies to build a supply chain for ferrous material. He added that this agreement aims to construct a reduction furnace with an output capacity of 2.5 million mt per year, with some of the direct-reduced iron to be transferred to JFE Steel.