According to the Japanese Ministry of Trade (METI), Japanese demand for crude steel in the second quarter of the current year is expected to total 27.01 million mt, decreasing by 1.2 percent from the first quarter output forecast, with an expected decrease for the first time in six quarters of 3.8 percent compared to the same quarter of 2013.
Total demand for Japanese steel, including exports, is expected to reach 23.62 million mt in the second quarter this year, down 3.6 percent from the estimated data for the previous quarter, and down 2.4 percent compared to the second quarter of 2013. Of the estimated second quarter demand, exports are expected to account for 8.23 million mt, down 3.5 percent year on year and up 0.3 percent compared with the estimate for the previous quarter.
Meanwhile, of the total demand in the second quarter of the current year, 18.56 million mt is expected to be for ordinary steel, decreasing by three percent year on year and down 4.1 percent from the estimated data for the previous quarter, while 5.06 million mt of demand is expected to be for special steel, up 0.1 percent year on year and down 1.4 percent from the estimated data for the first quarter this year.
The ministry announced that in the second quarter this year steel demand from the domestic construction sector will decrease from the previous quarter and on year-on-year basis, due to a reactionary decline after the last-minute demand for construction before the consumption tax hike in addition to a seasonal decline in civil engineering demand. Meanwhile, manufacturers' steel demand will decrease from the previous quarter (forecasted result), due to a reactionary decline after the last-minute demand for motor vehicles and other demand before the consumption tax hike in addition to the seasonal factor of the period following the accounting period. Demand in the manufacturing industry will remain flat on a year-on-year basis, with steel demand for shipbuilding and demand related to business investment including heavy electric machinery likely to trend sideways, despite decreases in demand for motor vehicles and home appliances.