[Ferro-Alloys.com]

  According to the data of the Japan Iron and Steel Union (hereinafter referred to as the Federation of Railways), Japan's domestic crude steel output in November 2020 was 7.264 million tons, a decrease of 5.9% compared with the same period last year. Affected by the rebound of steel demand, the decline has been steadily improving, about 5.8% smaller than that in October.

  Based on the data released by Japan's Ministry of economy, industry and technology, the crude steel output in the first quarter of 2021 is predicted to decrease by 2.5% to 23.5 million tons compared with the same period last year. Affected by the gradual recovery of automobile production, the year-on-year decline is significantly improved compared with 7.4% in the fourth quarter of 2020.

  It is reported that in terms of the year-on-year decline of crude steel production, compared with the actual performance in 2019, the year-on-year decrease in the second quarter of 2020 is 30.6%, and the year-on-year decrease in the third quarter is 22.7%. The recovery of automobile production has exceeded the expectation of the steel industry. Considering the current shortage of raw materials, Nippon Steel has decided to suspend the production of some orders. Although coronavirus pandemic is steadily recovering from the heavy pressure of the new steel market, the supply of iron in production and circulation is still insufficient, and the negative impact on supply chain such as auto parts enterprises is continuing to spread.

  In terms of the data of Japan iron and Steel Union, as of August 2020, the steel stock of ordinary steel in Japan has exceeded 6 million tons, but it has decreased to about 5.6 million tons in October. On the other hand, due to changes in supply and demand, steel prices are also rising. The price of hot rolled coil in East Asia has exceeded US $600 per ton, up nearly 40% from the lowest price in May.

  It is worth mentioning that the raw materials of Japanese manufacturing industry are not only lack of steel, but also high-function nylon used in auto parts, especially engines. With regard to high-function nylon, the supply and demand for Chinese market has been relatively stable, leading to the situation that local production in Japan cannot meet the demand.

• [Editor:Catherine Ren]