Posted on 21 Apr 2015
Japan's crude steel production fell 1.5% to 109.84 million tons in the year ended March 31, the first decline in three years, according to a report released Monday by the Japan Iron and Steel Federation.
Output of steel coil used to make automobiles and other products dipped 0.8%. Although production was strong in the first part of fiscal 2014 to fill orders placed before the April 1 consumption tax hike, demand slumped later on. Steelmakers say new orders have been sluggish since the start of 2015 as well because of high inventories of finished automobiles.
Demand from the construction industry has also been weak. Production of steel reinforcing bars used in condominiums declined 4.1%, while H-beam output fell 7.1%. In addition to sluggish housing starts, delays in construction projects due to labor shortages played a role.
In contrast, production of steel plate used in ships rose 0.5% on the back of robust shipbuilding.
March crude steel output, which was announced at the same time, slipped 4.5% from a year earlier to 9.28 million tons, down for the seventh straight month.
