Japan's steel production is projected to rise between July and September 2014

Japan's Ministry of Economy, Trade and Industry (METI) predicts a surge in crude steel production in the second quarter of the current fiscal year, according to research by the Japanese Ministry of Economy, Trade and Industry.

Steel output in July-September 2014 is projected to increase by 27.960 million tons, which is 0.9 percent higher compared to the output for the corresponding period in 2013 and slightly higher by 0.1 percent from the previous quarter. Steel production in the country totaled 27.720 million tonnes during July-September 2013 and 27.950 million tonnes during April-June 2014.

METI estimates that demand for conventional steel products is expected to decline 3.4 percent during July-September 2014 from the previous year. Domestic demand is expected to grow 2.4 percent, while export demand is likely to decline 5.5 percent. Demand from the domestic construction industry is expected to rise slightly. Demand from various manufacturing industries will rise slightly by 0.1 percent between July and September 2014.

The demand for products from special steels in July-September 2014 is estimated at a total of 5.080 million tons, down 0.9 percent compared to the previous year. Domestic demand will account for 65 percent of total demand. However, domestic demand is likely to fall 1.8 percent year on year. Export demand will account for 35 percent of total demand and is expected to rise marginally, up 0.1 percent from the previous year.