Japan’s crude steel production forecast for October to December will decrease According to Reuters
© Reuters. FILE PHOTO: A view of the chimney of a steel mill at an industrial park in Kawasaki, Japan, January 16, 2017. Photo taken January 16, 2017.REUTERS / Kim Kyung-Hoon
By Yuka Obayashi and Kantaro Komiya
TOKYO (Reuters) – Japan’s crude steel output is expected to fall for a fourth straight quarter in the last three months of the year, as auto output grows slowly amid chip shortages, the Ministry of Economy, Trade and Industry said. industry (METI) said on Friday.
METI forecasts a 6.8% decline to 22.55 million tons in the October-December period from 24.20 million tons a year earlier, as parts supply disruptions continue to affect global production. demand of Japanese car manufacturers.
That would be up 0.5% from 22.44 million tonnes in the July-September quarter.
Daisuke Matsuno, director of metals industry at METI, said in a press conference: “Automobile production is expected to recover gradually, but there is also downside risk as semiconductor shortages remain. has not been completely eliminated.
Automobile manufacturers such as Toyota Motor (NYSE: Corp) and Honda Motor Co have lowered their output targets for October as they face persistent logistics and supply chain problems.
Demand for steel products, including those for export, is forecast to fall 3.8% to 20.65 million tonnes from a year earlier, the ministry said, citing a survey. branch.
Exports are forecast to drop 10.8% to 6.20 million tonnes.
“The recent depreciation of the yen is expected to improve the competitiveness of Japanese steel when they are exported, but demand in Asia is sluggish amid the global economic slowdown,” said Mr. Matsuno. recession, affected by rising interest rates”.
The yen fell to a 32-year low this week as the Bank of Japan kept policy super-loose while many of its global peers aggressively raised interest rates to combat rising inflation.