Tel :
Tel :
According to the latest forecast released by the Japanese Ministry of Economy, Trade and Industry (METI) on April 10th, the total domestic demand for steel in Japan is expected to be 18.04 million tons from April to June 2025, a decrease of 4% compared to the same period in 2024. Among them, domestic demand SA662 Grade A steel is expected to be 12.04 million tons, a year-on-year decrease of 2.7%; The export demand is expected to be 6 million tons, a year-on-year decrease of 6.5%.
METI pointed out that although production in the automotive industry has recovered, the construction industry is still affected by rising raw material costs and labor shortages, and overall steel demand remains sluggish. It is expected that the steel demand in the construction industry will be 3.9 million tons in the second quarter of 2025, a year-on-year decrease of 2.4%.
In terms of manufacturing, sectors other than automobiles have shown weak performance, with an expected overall steel demand of 5.48 million tons, a year-on-year decrease of 2.7%. METI explained that this is mainly affected by factors such as the decline in market share of Japanese car brands in China and the economic slowdown in Southeast Asia and Europe.
In terms of external environment, the pressure of trade SA662 Grade A steel barriers continues to rise. Former US President Trump reinstated the policy of imposing a 25% tariff on all imported steel and aluminum on March 12th. In 2024, the total amount of steel imported by the United States from Japan was 1.07 million tons, with Japan being its sixth largest steel supplier.
Subsequently, on March 26th, Trump ordered a 25% tariff on imported cars and light trucks starting from April 2nd, and will implement similar tariffs on automotive parts starting from May 3rd. According to data from the US Department of Commerce, Japan's car exports to the US reached 1.4 million units in 2024, making it the third largest source of automobiles for the US.
Although Trump has temporarily suspended the "equivalent tariffs" against Japan and other countries on April 9th (originally planned to impose an additional 24% on Japan), he has retained a global base tariff of 10%. METI stated that Japan's steel export environment will still face significant challenges.
To cope with the impact of tariffs, the Japanese government has introduced short-term measures on April 3rd. Affected by overall weak demand, Japan's crude steel production in the second quarter of 2025 is expected to be 20.2 million tons, a year-on-year decrease of 4.9%. METI also reminds us to closely monitor the spillover effects of China's SA662 Grade A steel supply-demand imbalance on surrounding markets, as well as the latest developments in US trade policies.
