Japan Crude Steel Output Falls for 3rd Straight Month in June

• June steel output fell 4.4% y/y to 6.72 Mt—the third straight monthly drop.
• Decline driven by weak auto/construction demand, rising costs, labor shortages.
• First-half output hits lowest since 2009; further 2.3% drop forecast in Q3.

Japan, which is the third largest steel producer in the world, recorded crude steel production falling again for the third consecutive month in June 2025, with production falling 4.4% year-on-year to 6.72 million tonnes, and 1.7% vs. May, according to the Japan Iron and Steel Federation. 

The ongoing decline is primarily due to weak demand from domestic markets in the automotive manufacturing and constructions, along with increased prices of materials and labour shortages.

On the export side, Japanese steelmakers are facing an increased headwind, with China ramping up shipping volumes. In June, China’s exports fell 8.5% month-on-month, but the nation’s exports for the first half of the year were up 9.2%, putting Japanese producers under increased pressure.

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Japan’s crude steel output for the first half of the year was 40.55 million tonnes, the worst January–June total since 2009, which was at the time of the global financial crisis. Analysts contend the current downturn is worse than it was in 2009 without any sign of recovery, for the immediate future.

Going forward, the Ministry of Economy, Trade and Industry, projects that there will be another 2.3% year-on-year decline in production for the July–September quarter, foretelling ongoing weak dynamics.