Japan’s production of crude steel is projected to fall by 3mn mt in fiscal year 2019-20 to 100mn mt compared to the prior period amid fall in domestic demand and a dip in exports due to global slowdown.
The demand from Japan’s construction, auto manufacturing, shipbuilding and industrial goods sectors was weaker in FY19-20 according to Japan Iron and Steel Federation (JISF). The output is expected to fall for the third consecutive year after it peaked in 2016 at 105mn mt.
The decline in demand was attributed to economic slowdown and trade war between the US and China. Production in October was down by 5pc to 8.2mn mt from the year prior.
Exports of semi-finished and finished steel products fell from 37.47mn mt in 2017 to 35.84mn mt in 2018, as per the report released by World Steel Association in Dec.