Crude steel production in Japan, the world's third largest producer, decreased by 7.4% in 2022 compared to the previous year due to the weakening of export demand due to the slow development in automobile production and the slowdown in the global economy.
According to figures from Japan on Monday, production decreased for the first time in two years to 89.23 million tons.
During the COVID-19 pandemic, Japan Toyota Motor Corp 7203T performed better than most automakers in managing supply chains, but decreased victim to the protracted sawdust shortage last year and repeatedly lowered its monthly production targets.
“Domestic steel demand was affected by repeated delays in the development of automobile production, 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,” said a researcher from Japan.
"Meanwhile, Japanese steel producers are reducing the number of blast furnaces, which means that even if demand increases, it will be difficult for Japan's steel production to return to the level of 100 million tons in terms of supply capacity," he added.
Steel production for the October-December quarter decreased by 11.5% y-o-y to 21.42 million tons.
November December non-seasonally adjusted production decreased by 13.1% compared to the previous year to 6.9 million tons and decreased by 3.8% compared to November.
Seasonally adjusted production decreased by 13.1% y-o-y to 6.9 million tons in December and decreased by 3.8% compared to November.