<article><p class="lead">Japan's steel manufacturers forecast the country's crude steel production could recover to near 90mn t during the April 2021-March 2022 fiscal year from an expected fall to just above 80mn t in 2020-21.</p><p>Industry group the Japan iron and steel federation (JISF) predicted the steel output recovery in 2021-22 based on rebounding demand at home and abroad from an earlier weaknesses triggered by the Covid-19 pandemic. Domestic steel demand is expected to increase from the manufacturing industry, led by auto producers, while demand from the construction sector will remain flat.</p><p>The group warned steel output in 2021-22 will remain vulnerable to existing risk factors, such as the pandemic, the US-China trade war and China's economic growth.</p><p>Japanese <a href="https://direct.argusmedia.com/newsandanalysis/article/2165986">crude steel output</a> has been gradually recovering after June output hit its lowest level since February 2009. The country's 2020-21 steel output could fall by 20pc or more compared with a year earlier to below 80mn t, according to an earlier forecast by federation chairman Eiji Hashimoto, who is also president of Japanese producer Nippon Steel.</p><p>The latest prediction by JISF puts 2020-21 steel production at just above 80mn t. Japanese crude steel output is forecast to stay below 100mn t for a third consecutive year in 2021-22 after falling to 98mn t in 2019-20. The federation based its steel production outlook on expectations of a modest economic recovery in Japan, with consumer spending capped by weaker employment and income prospects in the aftermath of the Covid-19 economic slump.</p><p class="bylines">By Rieko Suda</p></article>
