Japan's steel demand is forecasted to drop by 5.5% year-on-year to 19.15 million tons from July to September 2024. This decline is attributed to weak consumption in the construction and manufacturing sectors, excluding automobiles. The construction industry faces significant challenges from labor shortages and rising raw material costs, further suppressing steel demand.

Beginning April 1, 2024, new regulations in Japan will limit construction workers to a maximum of 720 hours annually. This change is expected to lead to a 1.4% decline in steel demand within the construction sector in the third quarter, reducing it to 4.03 million tons. In the manufacturing sector, weak overseas demand for industrial machinery is anticipated to cause a 4.1% decrease in steel demand, down to 5.94 million tons.

On the export front, overall demand remains weak, particularly in China and Southeast Asia. The total annual export volume is projected to decrease by 8.7% year on year to 6.46 million tons. The downturn in China's real estate market, which accounts for 30% of total China's steel demand, is a significant factor affecting global steel demand.

Data reveals that sales of new homes by China's top 100 developers fell by 39.5% year on year in the first half of this year. Under these pessimistic conditions, Japan's steel production in the third quarter is estimated to decline year on year to 21.51 million tons.