Japan’s crude steel output falls on year in March

Japan's crude steel production fell on the year in March on the back of lower demand from the automobile sector, marking the first year-on-year decline in four months.

The country produced 7.2mn t of crude steel during March, down by 3.9pc from a year earlier, according to preliminary data released by industry group Japan Iron and Steel Federation (JISF) on 22 April.

The lower output is partly because of lower steel demand from the automobile sector, especially as fellow Japanese manufacturer Daihatsu suspended part of its operations since December 2023 after it was accused of tampering safety test results. Crude steel demand may not recover in April as Daihatsu will not reopen all its domestic facilities until 7 May.

Japan's crude steel output is forecast to fall by 2.2pc from a year earlier to 21.7mn t in April-June, according to a quarterly forecast released on 11 April by the country's trade and industry ministry (Meti). The year-on-year fall is mostly attributed to weaker demand in the construction sector, especially housing, on the back of rising material costs and labour shortages, according to Meti.

JISF separately said on 18 April that steel product demand from the non-housing construction sector during the April 2024-March 2025 financial year is forecast to fall from a year earlier. Demand would remain sluggish, a JISF researcher told Argus, despite several planned large construction projects including semi-conductor plants and data centres. Lower demand from other non-housing construction sectors, including office buildings weighed on overall demand, JISF added. The numbers were not disclosed.

By Yusuke Maekawa