Japan’s Ministry of Economy, Trade and Industry (METI) stated that in the January-March quarter, Japan’s crude steel output is forecast to reach 24.15 million mt, increasing by 1.9 percent year on year compared to 21.34 million mt in the same period last year. This increase is expected to bring annual output to 97.07 million mt.
The estimation reflects the recovery in production and higher demand from the automotive industry, which has been hit by semi-conductor chip shortage.
“Our forecast is based on an assumption that automakers will boost output to recover a loss from the recent months. But there is a downside risk, if car output does not rise according to their plans,” Daisuke Matsuno, director at the METI’s metal industries division, said.
Meanwhile, Eiji Hashimoto, chairman of the Japan Iron and Steel Federation, stated that Japan’s crude steel output for the financial year 2022-23 is forecast to total 95-97 million mt, as SteelOrbis previously reported.