Japan’s crude steel output in Q3 FY2021 (July-September) is forecast at 24.69mn mt, up by 30.1pc from a year ago amid a recovery in manufacturing activities, according to a survey conducted by METI.
Economic recovery, the anticipated easing of the pandemic situation, coupled with the organization of the Tokyo Olympic Games, is likely to instill positive business sentiment in the country.
In Q3 FY2020, crude steel output was at 18.59mn mt due to the impact of the COVID-19 pandemic.
Overall demand for finished steel products is expected to rise both in the domestic and overseas markets, stated the survey. Demand is forecast to grow by 7pc in Q3 to 21.75mn mt compared to the prior-year quarter. Domestic demand is expected to rise by 12.6pc to 14.39mn mt and exports by 26.7pc to 7.35mn mt.
In the domestic market, demand from the construction sector is expected to be flat due to fewer government projects because of the “5-year acceleration measures for disaster prevention/mitigation and national resilience.” Meanwhile, in the manufacturing sector, recovery could be faster due to the low influence of the pandemic.