Japan’s crude steel production declined for the second consecutive month in May, reflecting persistently sluggish domestic and global demand, according to preliminary data from the Japan Iron and Steel Federation (JISF). Output stood at 6.8 million tonnes, down 4.7% year-on-year, though it rose 3.5% from April levels.
The year-on-year decrease occurred despite JFE Steel, the nation’s second-largest producer, postponing the planned temporary shutdown of a basic oxygen furnace at its Kurashiki facility. The indefinite delay in this suspension averted an immediate drop in capacity, which would have cut the company’s annual crude steel output by 15%—roughly 4 million tonnes.
Electric arc furnace (EAF) steel production fell by 6.7% to 1.8 million tonnes, marking its tenth straight year-on-year monthly decline. The drop was linked to weak demand from Japan’s construction sector, which heavily relies on EAF steel.
JISF predicts continued production weakness, projecting total annual output could fall below 80 million tonnes by year’s end—a level not seen since the late 1960s. Contributing factors include soft global demand, competition from low-priced Chinese steel imports, and the impact of U.S. steel import tariffs, with no immediate signs of recovery.
