Japan's steel demand is expected to grow by 20.6% year on year in the second quarter

With the novel coronavirus pneumonia epidemic weakened, the two quarter (the first quarter of this fiscal year) total demand for steel in Japan is expected to be 20 million 610 thousand tons, which will increase 20.6% over the same period last year, 17 million 100 thousand tons. However, due to seasonal fluctuations, Japan's steel demand in the second quarter is expected to decline by 2.1% compared with the estimated value in the first quarter.

Japan's domestic steel demand in the second quarter is expected to grow by 20.3% year-on-year to 13.69 million tons, which is expected to decrease by 3.3% compared with the estimated value in the first quarter. The quarter on quarter decline was attributed to weaker demand in Japan's auto and construction industries. Affected by the global shortage of automotive semiconductor chips, it is expected that the steel demand of Japan's automotive industry may decline in the second quarter. Japan's construction steel demand is expected to weaken in the second quarter due to the delayed recovery of the non residential sector due to the impact of the epidemic.

Japan's crude steel production is expected to reach 23.235 million tons in the second quarter, up 28.3% year-on-year, but down 2% compared with the previous quarter's estimate. Japan's steel exports are expected to grow 21.1% year on year in the second quarter to 6.92 million tons.