Japan's crude steel output falls in September

Japan's crude steel production fell on the year in September. But the decline was limited, with factors such as heavy rainfall and typhoons likely contributing to lower output.

Japan's crude steel output fell by 0.6pc on the year to 6.34mn t in September, marking the first year-on-year decline in six months, data released by the Japan Iron and Steel Federation (JISF) show. Output was down by 4.7pc from August. Pig iron production fell by 2.8pc on the year to 4.48mn t in September — also the first year-on-year decline in six months.

The decline in September output may have been partly caused by natural disasters, including heavy rainfall and typhoons that affected some steelmakers over August-September, a JISF official told Argus on 25 October. It remains unclear whether these factors alone were responsible for the decline, the official added.

For example, Japan's JFE Steel said on 25 September that heavy rain associated with Typhoon No.25 disrupted operations at its East Japan Works in Chiba with the the impact on production expected to be prolonged. Its crude steel production at its East Japan Works could fall by around 600,000t, it added.

By furnace type, basic oxygen furnace (BOF) steel production fell by 3.2pc on the year to about 4.59mn t in September, the first year-on-year decline in six months. By contrast, electric arc furnace (EAF) output rose by 7pc on the year to about 1.76mn t in September.

The increase in EAF production was mainly the result of a low base a year earlier rather than an improvement in demand conditions, the official said. EAF output fell sharply in September 2025 because several maintenance outages overlapped. Production in September this year still remained below September 2024 levels.

On the demand side, investment related to artificial intelligence (AI), semiconductors and data centres continued to support steel demand, the official said. Demand from the automotive sector also remained firm.

In the construction sector, labour shortages continue to pose challenges. But demand, which had been in a prolonged downturn, appears to have stabilised as redevelopment projects and large-scale construction work continue. Structural issues such as labour shortages remain unresolved, but demand is no longer in a phase of significant decline, the official said.

"The demand environment has not changed significantly, and we expect demand to remain around current levels for the time being," the official said. Production may fluctuate from month to month, the market is not expected to experience major swings, the official added.

By Fumito Nagase