Latest News

Japan's crude steel production falls for the 12th consecutive month in February

Japan's crude steel production falls for the 12th consecutive month in February

A Japanese industry group said that the country's crude steel production fell by 8.5 percent in February compared to a year ago, marking the 12th consecutive month of decline. The demand for construction materials remained weak, a report showed.

The Japan Iron and Steel Federation reported that the monthly output, which was not adjusted for season, fell to 6.4 metric tons. This is the lowest figure since July 2020. The Japan Iron and Steel Federation said that the output was down 5.7% compared to January.

A federation analyst stated that delays or postponements of construction projects caused by soaring costs for materials and labour shortages impacted the demand in the industry, which in turn affected production in the third largest steel-producing nation in the world.

Tadashi Imai, chairman of the Japan Federation, has warned that U.S. steel and auto tariffs could cause Japan's steel production to drop by several millions tons annually.

Imai stated that the annual crude steel production could drop below 80 million tonnes. He also said that steel products used to make automobiles and direct steel exports worth more than one million tons could be affected.

In 2024, Japan's crude-steel output will be 84 millions of tons.

Imai, also the president Nippon Steel, expressed concern about the spread of protectionism in the world, saying that Japan may face an influx cheap steel products if it does not adopt trade protection measures.

Japan has not reacted to the anti-dumping and similar measures taken by other countries against China's cheap steel exports.

Imai stated that he hoped the Japanese government would take concrete steps to address his concerns.

No exemptions were allowed by President Donald Trump, who has already increased duties on steel and aluminum imports to 25% as of March 12. Vehicles and auto parts may be subject to tariffs as early as April 2.

The Japanese trade minister requested the United States not to impose tariffs on trade this month, but did not receive any assurances of exemptions. This included 25% duties on steel and aluminum.

"We hope that the Japanese government will keep discussions with U.S. counterparts in order to ensure Japanese steel's exemption from tariffs," added Imai. (Reporting and editing by Clarence Fernandez; Yuka Obayashi)

(source: Reuters)