The steel output of Japan has been forecasted to fall 4.1% this quarter, despite continued efforts to stimulate the economy.
The Ministry of Economy, Trade and Industry released a statement today setting out predictions which include crude steel output falling to 26.38 million metric tons, from 27.5 million tons in the same quarter starting April 1st this time last year. It was also said that production is set to fall 0.9% from the previous quarter.
Unfortunately higher exports encouraged by the weakened yen and the rebuilding of areas damaged by the March ’11 tsunami have failed to overcome a huge drop in domestic demand for steel from car producers, shipbuilders and other manufacturing industry.
Global overcapacity has been held accountable for the fall in Japan’s shipbuilding manufacturers’ steel consumption to 24.2% this quarter – the biggest drop among the country’s manufacturers. Car producers are predicted to cut their use of steel by 9.5% compared to April ’12, however ordinary steel consumption in construction is likely to increase, by as much as 5.8% to 4.92 million tons in the quarter beginning April 1st.