Author: Paul Ploumis
20 Mar 2015 Last updated at 02:02:23 GMT

TOKYO (Scrap Monster): The most recent statistics released by the Japan Iron and Steel Federation (JISF) suggests marginal drop in crude steel output by the country during the month of February this year. The drop in output is primarily attributed to the weakening domestic demand and reduced exports.

The country’s crude steel production for the month of February this year totaled 8.43 million tons, falling slightly by 0.2% year-on-year. The output during the month fell by nearly 7% when compared with the prior month. The Japanese crude steel output during January this year had totaled 9.03 million tonnes. The cumulative output during the initial two-month period of the year totaled 17.46 million tonnes, 2.2% lower when compared with the output during the corresponding two-month period last year.

According to industry sources, the slowdown in economy has adversely impacted Japanese domestic steel demand. The steel exports from the country declined 3.1% during 2014. The exports during the year had totaled 42.09 million tonnes. The exports have continued to remain tepid despite the marginal rise recorded during January. The shipments to Southeast Asia too continue to remain weak.

The steelmakers in the country forecast further drift in Japanese production during the year. According to Nippon Steel and Sumitomo Metal Corporation (NSSMC), the yearly steel output by the country is likely to decline in comparison with the previous year. The company estimates the country’s total output in 2015 to drop below 110 million tonnes. The Japanese output had totaled 111 million tonnes during 2014.