Japan's crude steel output fall again YoY in May
Crude steel production last month reached 7.168 million tonnes, which was higher by 1.6% from April but lower by 6.3% from May last year and marking the third consecutive monthly year-on-year decline, according to the JISF. Though daily crude steel production averaged 231,000 tonnes, lower compared with April's 235,000 t/d, the dip does not surprise because many electric-arc furnace (EAF) mills slowed production during Japan's 'Golden Week' of national holidays spanning April 27 through May 6.
In fact, EAF mills' output at 1.89 million tonnes last month was lower by 2.6% from April and by 7.8% from May last year while crude steel produced by Japan's three main blast-furnace (BF) steelmakers – Nippon Steel, JFE Steel and Kobe Steel – was higher by 3.2% month-on-month at 5.28 million tonnes, the JISF numbers show. Compared with May last year though, the integrated mills produced 5.7% less last month.
By product, output of steel items used in the construction industry such as rebars, sections and ordinary wire rods were all lower year-on-year as the building sector continues to struggle with labour shortages and higher costs for materials, the statistics indicate. For example, production of H-beams was up 8.3% from April at 274,000 tonnes but lower by a huge 18.2% from May last year, according to the federation.
When Nippon Steel announced last week that it was holding its domestic H-beam prices unchanged for a sixth consecutive month, the company noted that building work on large-scale construction projects is increasing but that business involving small-scale steel projects of less than 2,000 square metres "is still at a relatively low level," as Mysteel Global reported.
Similarly, production of rebars languished last month, with the JISF data for small bar production (almost all are rebars) falling by 10.5% from April and by 12.4% from May last year to reach 564,400 tonnes. This took the January-May total to 2.98 million tonnes, lower by 3.8% from the first five months of last year.
The latest numbers from the Ministry of Land, Infrastructure, Transport and Tourism show that during April, total construction starts across Japan fell by 2% on year to 10.1 million square metres, while within that total, starts on non-wooden structures including reinforced concrete and steel framed structures were lower by 1.3% from March at 6.33 million sq m.
One of the few carbon steel items where production increased both on-year and on-month in May was heavy plates where output reached 723,800 tonnes last month, up 4.4% from April and by an albeit tiny 0.3% from May last year. May was also the month in which Japan's shipbuilders – members of the Japan Ship Exporters' Association – (JSEA) – recorded an 84.9% on-year rise in new vessels delivered, namely 18 ships (equivalent to 611,915 gross tons).
Whether the rise in new vessels completed last month contributed to the rise in heavy plate output won't be known until the JISF publishes its steel orders data for May around mid-July, Mysteel Global notes.
Japan's January-May 2024 production of carbon steel items (selected)
Product |
January-May |
% chge YoY |
H-beams |
1,344,400 |
-9.6% |
Small bars (incl rebars) |
2,976,100 |
-3.8% |
Wire rods (ordinary) |
159,900 |
-4.8% |
Heavy plates |
3,651,900 |
-2.9% |
Hot rolled coils |
14,940,100 |
-1.1% |
Cold rolled coils |
5,816,900 |
+0.1% |
Galvanized sheets |
3,439,900 |
-3.6% |
Welded/seamless tubes |
1,309,400 |
-0.4% |
Unit: Tonnes
Source: JISF
Written by Russ McCulloch, russ.mcculloch@mysteel.com
Edited by Alyssa Ren, rentingting@mysteel.com
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