According to Japan's Ministry of Economy, Trade and Industry (METI), Japan's crude steel output in the second quarter may have fallen by 4.2% year-on-year to 23.33 million tons; in the first half of this year, this output was estimated at 46.41 million tons, down 3.4% year-on-year. The negative forecast was attributed to a shortage of auto parts, especially chips, which affected auto production.
In April-June, demand for Japanese steel products, including domestic and foreign markets, is expected to decline by 0.5% year-on-year to 20.98 million tons, of which steel exports may drop to 6.9 million tons, down 0.4% year-on-year
Japan's Ministry of Economy, Trade and Industry believes that due to supply constraints of semiconductors and other components and the conflict between Russia and Ukraine , there is a risk of further decline in steel demand.
