Japan crude steel output falls for third straight month in June
Output, which is not seasonally-adjusted, dropped to 6.72 million metric tons, the Japan Iron and Steel Federation said. Production was also down 1.7% from May.
An analyst at the federation said that the decline reflects weak demand in Japan from industries such as automotive manufacturing, along with rising material costs and ongoing labour shortages that continue to hamper construction activity.
Sluggish export demand is also dampening production, the analyst said, though the direct impact of U.S. tariff hikes on steel is limited as Japan exports only about 1 million tons to the U.S. market annually.
China's steel exports in June fell 8.5% from May to a four-month low of 9.68 million tons, but total outbound shipments in the first half rose 9.2% year-on-year to an all-time high of 58.15 million tons, as steelmakers boosted exports ahead of expected demand weakness from U.S. tariff increases.
Japan's steel output in the first six months fell 5% to 40.55 million tons, the lowest for the period since 2009, when the global financial crisis hit demand, according to the federation's analyst.
"While production rebounded quickly after the 2009 financial crisis, the current slump shows no signs of recovery and appears more serious," the analyst said.
Earlier this month, the Ministry of Economy, Trade and Industry projected that Japan's crude steel output will fall 2.3% in the July-September quarter from a year earlier.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
31 minutes ago
- Reuters
Ex-BOJ deputy chief Nakaso sees 'cracks' in dollar's supremacy
TOKYO, July 29 (Reuters) - The dollar will retain its supremacy as a key global currency but "cracks" appearing in its status will prod investors to continue diversifying into other currencies, said former Bank of Japan Deputy Governor Hiroshi Nakaso. On Japan's monetary policy, Nakaso said the BOJ is likely to resume interest rate hikes once uncertainty over the impact of U.S. tariffs on the economy diminishes. The global economy faces an increased risk of fragmentation due to President Donald Trump's policies, which seem driven by the recognition that globalisation did more harm than good to the U.S., said Nakaso, who retains close contact with domestic and overseas policymakers. "We are, in this regard, at an inflection point where the U.S. is trying to replace the global economic order" based on free trade and multilateralism, with a new one "that better serves its national interest," Nakaso told Reuters in an interview on Monday. Nakaso said the greenback's supremacy will not be overtaken anytime soon as "no other currency at this point can substitute the U.S. dollar," adding that the Federal Reserve will stand ready to provide dollar funding in times of market stress. "However, what we witnessed in April shortly after the 'Liberation Day' was that cracks have appeared in the almighty dollar," and a sign some investors have shifted part of their portfolios away into other currencies, he said. "This diversification trend may continue over the longer run." As chairman of a BIS committee on market operations, Nakaso took part in the creation of a dollar swap line to address a liquidity crunch after the 2008 collapse of Lehman Brothers. Global forums like the Bank for International Settlements (BIS) and the G7 group of advanced economies will continue to play a key role in times of financial crises, he said. Trump's announcement of sweeping tariffs on April 2, which he described as "Liberation Day", triggered a huge outflow of funds from U.S. assets in a move some analysts saw as eroding market trust over the dollar. Markets have restored some calm as Trump de-escalated his trade war including by signing a trade deal with Japan this month, which led to lower tariffs for its mainstay automobiles. With uncertainty still high, the BOJ will likely hold off raising rates for now to scrutinise the hit to Japan's economy from U.S. tariffs and slowing global growth, Nakaso said. "But once the uncertainties clear enough for the BOJ to restore confidence that the economic and inflation trajectory will move in line with their projections, I think they will be back on their way to the next rate hike," he said. Nakaso also said there were upside risks to inflation, as firms have become more keen to raise wages and pass on rising costs through price increases. "Food products that people buy more frequently are rising much quicker than the headline inflation rates. This runs the risk of inflation expectation overshoot," he said. Even with another rate hike, Japan's monetary conditions will remain loose as inflation-adjusted borrowing costs are still negative, Nakaso said. "Monetary policy in Japan needs to be vigilant to upside risks to prices too, so as not to be left behind the curve." A career central banker with expertise on financial markets, Nakaso served as deputy BOJ governor from 2013 to 2018. He is currently chairman of Japan's Daiwa Institute of Research.
Reuters
31 minutes ago
- Reuters
China's Changan restructured as independent state-owned automaker, CCTV reports
BEIJING, July 29 (Reuters) - Changan Automobile has begun operating as an independent automaker controlled by China's central government, state television CCTV reported on Tuesday. The spin-off from state-owned China South Industries Group Corp was established in Chongqing on Tuesday. With 117 subsidiaries, the restructured new automaker will focus on smart vehicles, robots, flying cars and embodied intelligence, among other fields. It also has plans to step up expansions into markets including Southeast Asia, the Middle East, Central and South America and Europe, the report said.
Reuters
31 minutes ago
- Reuters
Indonesia's FDI drop 6.95% y/y in Q2, biggest fall since 2020
JAKARTA, July 29 (Reuters) - Foreign direct investment into Indonesia dropped 6.95% in the second quarter from a year earlier to 202.2 trillion rupiah ($12.3 billion), investment ministry data showed on Tuesday, marking the deepest contraction in five years. The data excludes investment in the financial and oil and gas sectors. The fall in FDI was biggest since a 9.2% annual fall in the first quarter of 2020, according to data from LSEG. Including domestic sources, Southeast Asia's largest economy saw a total of 477.7 trillion rupiah worth of direct investment in the quarter, creating 665,764 jobs, the ministry said. Some of the biggest beneficiaries of FDI in the April-June period were the base metal, mining, services, transportation, warehouses and telecommunication industries, the ministry said. Singapore, Hong Kong and China were the biggest sources of FDI in the second quarter. ($1 = 16,385 rupiah)
