April 2022
Japan’s crude steel production is ranked number three in term of global production, surpassed only by China and India. Prior to the pandemic Japan’s average crude steel production was 109Mt per year from 2005 to 2018, with production peaking at 120Mt in 2007. Japan’s domestic steel demand is expected to level out due to the declining population and increased protectionism as Japanese customers seek to increase local steel production.
In the current challenging geopolitical times local production and local consumption is becoming more prominent as globalisation takes a back seat. AME expects Japan’s crude steel production for 2022 and 2023 to be 100Mt, up 3.9% and 101Mt, up 0.9%, respectively year on year. Beyond 2024 AME expects crude steel production to remain flat at 101Mt with a zero-growth rate for the foreseeable future.        Nippon Steel Nippon Steel announced its medium to long-term plans in September 2020 to reach a total of 100Mt of crude steel capacity, from its current capacity of 70Mt (54Mt domestic and 16Mt overseas). The company plans to expand in India, the US and Southeast Asian countries. Two key strategies of Nippon Steel include to rebuild its domestic steel business and to deepen and expand its overseas business.