Japan is likely to produce around 25.24 million tonnes of crude steel over April-June, down -2.4% year-on-year and -3.1% quarter-on-quarter, according to the Ministry of Economy, Trade and Industry (Meti). Quarterly output will be at the lowest in seven years, Kallanish notes.

Japanese steel demand meanwhile is also expected to decline by around -3.8% y-o-y in the April quarter to 22.91mt. Meti says steel demand from construction is likely to fall -3.1% y-o-y in the April quarter. Manufacturing steel demand is also expected to drop -1.7% y-o-y.

Reported crude steel production fell in Japan in February by -1% y-o-y to 8.35mt, according to the Japan Iron and Steel federation (Jisf). Weak domestic steel demand has been coupled with low export volumes, leading to weak predictions for domestic output and sales. Exports are expected to fall -6.3% over the quarter, Meti adds.