Crude steel
output in Japan, the world’s third biggest producer, fell 7.4% in 2022 from the
previous year due to a slow recovery in automobile production and weaker export
demand amid a slowdown in the global economy, Reuters reported.
Output dropped for the first time in two years to 89.23m tonnes, The Japan Iron and Steel Federation said.
During the Covid-19 pandemic, Toyota Motor fared better than most car
makers in managing supply chains, but it fell victim to the prolonged chip
shortage last year, cutting monthly production targets repeatedly, the report
noted.
During the COVID-19 pandemic, Japan’s Toyota Motor Corp fared
better than most car makers in managing supply chains, but it fell victim to
the prolonged chip shortage last year, cutting monthly production targets
repeatedly.
“Domestic steel demand was hit by repeated delays in automobile
production recovery, while overseas demand also weakened in the second half of
the year due to high inflation and interest rate hikes in the United States and
Europe,” a researcher at the federation told Reuters.
“Meanwhile, the Japanese steelmakers have been reducing the
number of blast furnaces which means it would be difficult for Japan’s steel
output to bounce back to 100m tonnes level from the supply capacity point of
view even if demand picks up,” he added.
Reuters said steel production for the October to December
quarter slid 11.5% from a year earlier to 21.42m tonnes.
Output, which is not seasonally-adjusted, fell 13.1% in December
from a year earlier to 6.9m tonnes and decreased 3.8% from November, the report
added.