Posted on 10 Jul 2023
Japan’s crude steel output is forecast to rise 2.2% in the July-September quarter from a year earlier, backed by a moderate recovery in automobile production and higher exports, the Ministry of Economy, Trade and Industry (METI) said on Friday.
It would mark a first increase in seven quarters.
The ministry estimated crude steel output in the world’s third-biggest steel producer to be 22.31 million metric tons for the July to September period, up from 21.82 million metric tons a year earlier.
But it expects to log a 0.5% fall from the previous quarter, due to a seasonal reduction in electric arc furnaces.
Demand for steel products, including those for exports, is predicted to rise 0.9% to 20.37 million metric tons in July-September compared with a year earlier, the ministry said, citing an industry survey.
Exports are forecast to rise 10.0%, recovering from a slump a year earlier due to sluggish overseas market conditions, the ministry said.
Japanese automaker Toyota Motor 7203.T last week reported a 10% jump in global sales for May from a year earlier, benefiting from growth at home and other key markets on improvement in the supply of chips and other parts.
“Still, there are downside risks to steel demand from the auto industry amid the persistent concerns over a shortage of auto parts, including semiconductors,” Daisuke Matsuno, director of METI’s metal industries division, told a press conference.
He also warned about the uncertain outlook for exports due to the economic slowdown overseas including in China, the world’s biggest steel consumer.
China’s factory activity declined for a third straight month in June and weakness in other sectors deepened, official surveys showed last week, adding pressure on authorities to do more to shore up growth as demand falters at home and abroad.
Source:Reuters
