Crude steel production in Japan is expected to rise in 2019 which is to be driven particularly by construction activities ahead of the 2020 Tokyo Olympics, Japan Iron and Steel Association anticipates.
Commodity Inside understands that depending on the hosting country such major events usually drive steel demand by constructing new stadiums as well as buildings & infrastructure. Qatar which is going to host major events such as the 2022 Football World cup and 2028 Olympics games, all for the first time, has already started construction for the preparation of events.
However, Japan’s has already had most of the mega steel-intensive infrastructure works completed. Commodity Inside assesses over 75% of the Olympics related construction works have now been completed. The remaining works would certainly have opportunities for steel to be used and help domestic production to rise, though we do not expect a substantial surge in steel production.
Even crude steel production decreased by 0.3% in 2018 to a nine-year low, which pushed Japan behind China and India in the ranking of crude steel producing countries. The decline in Japan steel production was a mix of various factors including production disruption, natural disasters and indeed tough competition in the international market.
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