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.