Japan’s steel output to hit 5-yr low

Japan’s crude steel output is forecast to decline by 2.4 per cent in the first quarter of 2025, driven by sluggish demand from the manufacturing and construction sectors, according to the Ministry of Economy, Trade and Industry (METI). This is expected to bring the fiscal year output, ending March 31, to 83.72 million metric tons, the lowest since 2020 and a 3.6 per cent drop from the previous year.

METI anticipates crude steel production will reach 20.93 million metric tons in January-March, a 0.1 per cent decrease from the current quarter. Steel product demand, including exports, is projected to decline by 0.5 per cent year-on-year to 19.09 million tons, with exports falling by 0.4 per cent.

The Japan Iron and Steel Federation expects a modest recovery in fiscal 2025 output but warned of rising steel imports from China. Tadashi Imai, the federation’s chairman, urged swift government action to address the surge, citing risks to domestic supply chains. Moreover, METI’s Manabu Nabeshima acknowledged concerns over China’s export volumes and emphasised adherence to WTO rules while addressing trade issues.

China’s steel exports, already near decade-high levels, are expected to remain elevated in 2025 due to domestic overcapacity, posing further challenges for global markets.

Attribution: Reuters

Subediting: M. S. Salama