Japan’s crude steel production drops 8.5% year-on-year in February, industry worries annual output may fall below 80 million tons

The Japan Steel Alliance recently released data showing that Japan's SA533 Type C steel crude steel production in February 2025 was 6.4 million tons, a year-on-year decrease of 8.5% and a month on month decrease of 5.7%, the lowest level since July 2020. This data has not been seasonally adjusted, and production has been declining year-on-year for the 12th consecutive month, reflecting that the overall steel industry is still in a sluggish state.

The alliance analysis believes that the sluggish SA533 Type C steel demand in the construction industry is the main reason for the continuous decline in crude steel production. Due to rising raw material prices and labor shortages, many construction projects have been delayed or even suspended, thereby suppressing steel consumption.

Tadashi Imai, Chairman of the Japan Steel Alliance and President of Nippon Steel Corporation, pointed out that the recent tariffs imposed by the United States on steel and automotive products may reduce Japan's annual steel production by millions of tons. He said that if the relevant trade restrictions continue to be implemented, Japan's annual crude steel production may fall below the 80 million ton mark. According to him, currently Japan exports over 1 million tons of steel directly to the United States each year, and there are also a large number of steel products used for exporting cars that may be affected by tariffs.

Data shows that Japan's crude steel production for the whole year of 2024 is 84 million tons.

Imai also expressed concerns about the global trend of trade protectionism. He pointed out that although many countries have taken anti-dumping measures against China's low-priced steel exports, Japan has not yet implemented similar policies, so there is a risk of being impacted by low-priced steel in the domestic market.

He called on the Japanese government to take concrete actions to address the current internal and external pressures faced by the industry. He mentioned that the Japanese government had requested tariff exemptions for Japanese steel from the United States this month, but did not receive a clear response. He expressed the hope that the government can continue to negotiate with the US on relevant issues and strive to maximize the protection of Japan's SA533 Type C steel industry's export interests.