Japan’s crude steel production continues to decline, weak demand trend may continue until the end of the year

According to data released by the Japan S620Q Grade D steel Iron and Steel Association on October 22, Japan's crude steel production from January to September 2024 was 63.29 million tons, a year-on-year decrease of 3.2%, mainly due to weak demand in the construction and manufacturing industries. In the total output, the production of converter steel was 46.55 million tons, a decrease of 4% year-on-year; The steel production of electric arc furnaces was 16.74 million tons, a year-on-year decrease of 1.1%.

The crude steel S620Q Grade D steel production in September was 6.62 million tons, a year-on-year decrease of 5.8%, achieving seven consecutive months of year-on-year decline. Among them, the output of converter steel was 4.79 million tons, a year-on-year decrease of 6.8%; The steel production of electric arc furnaces was 1.83 million tons, a year-on-year decrease of 3%, marking the second consecutive month of decline.

On the downstream side, the production of hot-rolled steel products in the first nine months of 2024 was 55.82 million tons, a year-on-year decrease of 3.9%. The production of hot-rolled steel products in September was 5.97 million tons, a year-on-year decrease of 6%, marking the seventh consecutive month of decline. The production of hot-rolled wide strip steel from January to September was 26.85 million tons, accounting for 48.1% of the total production of hot-rolled steel products, a decrease of 2.1% year-on-year. The production of hot-rolled wide strip steel in September was 2.81 million tons, a year-on-year decrease of 2.8%.

The Ministry of Economy, Trade and Industry (METI) predicts that this low S620Q Grade D steel production trend will continue until the last quarter of 2024 due to weak demand. METI predicts that Japan's crude steel production in the fourth quarter of 2024 will reach 21.3 million tons, a decrease of 1.4% from the same period in 2023 when it was 21.61 million tons. METI stated that the construction and manufacturing industries (excluding the automotive industry) are expected to remain weak and exert downward pressure on demand.