Japan's Kanto Region Anticipates Steel Production Boost in July

Japan's Kanto region is set to see a rise in steel production this July, with electric furnace steelmakers forecasting a 2.5% increase in crude steel output. Industry data reveals that 14 companies, operating 15 plants in the region, plan to produce 360,000 tons of crude steel, up from 351,000 tons in the same month last year, marking an increase of 9,000 tons.

This uptick represents the first rise in production in seven months, reversing a trend since December. Compared to June, production is also expected to grow by 2.5%.

Two of the 15 plants, including Chiyoda Steel, are planning to ramp up production. Conversely, three plants, including JFE Steel, will cut output, while the remaining ten will maintain their current production levels.

Reflecting this production increase, the steelmakers' scrap iron purchase plans for July are expected to grow to 366,000 tons, a 5.4% increase from 347,000 tons in June, and a 1.8% rise from 360,000 tons in July last year.

As of the end of June, scrap iron inventories across the 15 plants stood at 160,000 tons, down 8.4% from 175,000 tons the previous month.

This anticipated rise in production and scrap iron purchases signals a positive shift for the industry, indicating recovering demand and strategic adjustments by steelmakers in the Kanto region.