Japan’s steel industry is facing challenges due to falling domestic consumption and rising imports, particularly from China. According to data from the Japan Iron and Steel Federation (JISF), domestic steel consumption in September increased by 2.7% compared to the previous month, to around 3.5 million tons. However, this figure represents a 10% decrease compared to the same month in 2023.
In the first nine months of 2024, Japan's steel consumption amounted to 32.4 million tons, showing a decrease of 3.9% compared to the same period last year. The automotive sector accounted for the largest share, with consumption of around 8 million tons, but this represents a decrease of 8% compared to the previous year. The construction sector also recorded a high figure with a consumption of 6.28 million tons, but this represents a decline of 4.8% compared to last year.
Another challenge facing the Japanese steel sector is increasing imports. Steel imports to Japan from April to September 2024 reached the highest level in the last decade, raising concerns in the sector. Nippon Steel Vice President Takashi Hirose said that steel imports in the first six months of fiscal 2024-2025 amounted to 2.8 million tons, the highest level since 2014. Steel imports, excluding special grades, increased by 10% to 2.55 million tons, while shipments from China broke a record with 480,000 tons.
China, the world's largest steel exporter, shipped 91.89 million tons of steel in the first ten months of 2024, showing an increase of 23% from the previous year, and is expected to exceed 100 million tons by the end of the year. The Japanese government is reportedly considering trade measures to address the situation and mitigate potential risks.
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