Posted on 23 Apr 2021
Japanese crude steel production dropped for a fourth consecutive year in the April 2020-March 2021 fiscal year to the lowest level since 1968-69, as the Covid-19 pandemic hampered global economic and manufacturing activity to weaken steel demand.
The country's crude steel output declined by 16pc on the year to 82.8mn t in the last fiscal year, according to data released today by the Japan iron and steel federation (JISF). The 2020-21 output also fell below 90mn t for the first time since 1970-71.
Basic oxygen furnace-based output dropped by 18pc on the year to 61.4mn t, while electric arc furnace (EAF)-based output declined by 9pc to 21.4mn t, the JISF said. The ratio of EAF-based output edged up by 1.9 points to 25.8pc in 2020-21 compared with a year earlier.
Japanese imports of iron ore declined sharply in the last fiscal year in line with the 16pc drop in crude steel output, according to finance ministry data.
March output of crude steel increased for the first time in 13 months and was up by 5pc on the year at 8.3mn t, according to JISF. The March output was also up by 11pc from February.
The Covid-19 pandemic and resulting global economic slowdown dealt a serious blow to the manufacturing industry in Japan and globally, denting demand for steel products and forcing output cuts at Japanese steel mills last April-June. Domestic steel production was gradually restored, along with a strong car output recovery towards the end of 2020, but remains vulnerable to a stuttering economy in the face of rising Covid-19 infections.
The Japanese trade ministry this month projected that April-June crude steel output will fall from the January-March quarter because of weak demand from the car manufacturing industry and a seasonal decline in demand for steel construction material.
Source:Argus
