Industry News

1、 Current situation of demand and production capacity
Weak local demand
The demand for steel in the construction industry continues to decline: Japan's crude steel production in the 2024-25 fiscal year decreased by 4.5% year-on-year to 82.95 million tons, hitting a three-year low, mainly due to the decline in downstream construction and automotive industry orders.
Export obstruction intensifies pressure: In October 2024, steel exports decreased by 6.4% year-on-year, and steel exports to the United States plummeted by 34.8% due to a 25% tariff, putting pressure on indirect exports of light steel keel.
Structural adjustment of high-end production capacity
Industrial upgrading to address challenges: Japanese steel companies have increased their per capita crude steel production to 2200 tons/person by reducing the number of employees (62% decrease in the number of employees at Nippon Steel compared to 1992) and scaling up equipment (increasing blast furnace capacity to 4902 cubic meters).
The proportion of high-end products has increased: High end products in the stainless steel industry (such as high nitrogen martensitic stainless steel for automobiles and pressure vessel steel for nuclear power) account for 35%, supporting the application of light steel keel in high value-added fields.

2、 Competition pattern of industrial chain
Local enterprise advantage areas
Technological barriers consolidate the market: KIRII holds a 30% share of the Japanese light steel keel market, relying on precision manufacturing processes to achieve a balance between product strength and lightweight, with an annual production capacity of 200000 tons.
High end scenario penetration: The duplex stainless steel developed by Nippon Steel occupies 70% of the market share in marine engineering, which is suitable for the anti-corrosion needs of light steel keel in coastal buildings.
International competition impact
Squeezing low-priced products in China: The average export price of Chinese steel has decreased by 18.7% year-on-year (2024), and Japan's domestic light steel keel is facing price competition pressure.
US tariff escalation: In June 2025, the US will increase its steel and aluminum tariffs on Japan from 25% to 50%, which is expected to lower Japan's nominal GDP growth rate by 0.02 percentage points.

3、 Green transformation and technological upgrading
Policy driven environmental upgrade
Mandatory emission reduction requirements: After the revision of the Air Pollution Prevention Law, the NOx emission standards are 30% stricter than in 2015, promoting the popularization rate of SCR devices in steel mills to 100%.
Expansion of electric furnace steelmaking: The government invests 12 billion yen to support hydrogen metallurgy, with the goal of increasing the proportion of electric furnace steelmaking from 28% to 45% by 2030.
Popularization of intelligent production
The factory automation rate exceeds 50%, and the AI quality inspection system has increased the yield rate to 99.5%, reducing the production cost of high-end light steel keel.
Application of modular prefabrication technology: achieving "factory wall construction and on-site assembly", shortening the construction period by 60%, in line with the trend of increasing penetration rate of prefabricated buildings in Japan (reaching 75% in 2000).