Japan’s July crude steel output rises for the first time in 19 months

in Commodity News23/08/2023

Japan’s crude steel output rose 0.9% in July from a year earlier, increasing for the first time in 19 months as auto manufacturing picked up, the Japan Iron and Steel Federation said on Tuesday.

Production in the world’s third-biggest steelmaking country has been on a downtrend since last year as a global chip shortage and COVID-19 lockdowns in China repeatedly delayed a recovery in production by Japanese automakers.

Crude steel output, which is not seasonally-adjusted, rose to 7.39 million metric tons for July. Output increased 0.8% from June.

“The recovery in automobile production helped boost steel output,” an analyst at the federation said.

“But crude steel output is expected to increase only gradually as demand for other manufacturing industries and construction remain sluggish,” he added.

The Ministry of Economy, Trade and Industry (METI) forecast in early July that Japan’s crude steel output will rise 2.2% in the July-September quarter from a year earlier, backed by a moderate recovery in automobile production and higher exports.Source: Reuters (Reporting by Yuka Obayashi; Editing by Sharon Singleton)