By Yuka Obayashi
TOKYO (Reuters) – Japan’s crude steel output fell 8.5 % in February from a year earlier for a 12th straight monthly decline, as demand from the construction sector stayed weak, an industry body said on Monday.
Output, which is not seasonally adjusted, dropped to 6.4 million metric tons, the lowest monthly figure since July 2020, the Japan Iron and Steel Federation said. It was also down 5.7% from January.
Delays or postponements in construction projects due to soaring material costs and labour shortages depressed demand in the sector, hitting production in the world’s third-biggest steelmaking nation, a federation analyst said.
U.S. tariffs on steel and automobiles could reduce Japan’s annual steel output by several million tons, Tadashi Imai, the chairman of the federation, warned.
“Annual crude steel production in Japan could fall below 80 million tons,” Imai said, adding that direct steel exports of more than 1 million tons to the United States, and steel products used in automobiles exported there, could be hit.
Japan’s crude steel output was 84 million tons in 2024.
Imai, who is also the president of Nippon Steel, flagged concerns about the global spread of protectionism, saying Japan could face an influx of inexpensive steel products as it has not adopted trade protection measures.
While many countries have instituted anti-dumping measures and similar actions against China’s exports of cheap steel, Japan has not responded.
“We hope the Japanese government will take concrete actions to address our concerns,” Imai said.
U.S. President Donald Trump has already raised duties on imports of steel and aluminium to 25% from March 12, with no exemptions. Tariffs on vehicles and auto parts could take effect as soon as April 2.
Japan’s trade minister asked the United States this month not to impose trade tariffs, but received no assurance of an exemption, including from duties of 25% on steel and aluminium.
“We hope the Japanese government will continue discussions with U.S. counterparts to ensure Japanese steel is exempt from tariffs,” Imai added.
(Reporting by Yuka Obayashi; Editing by Clarence Fernandez)
