TOKYO: Japan’s crude steel production in fiscal 2023 decreased 1.1 pct from the previous year to 86.83 million tons, down for the second straight year and below 100 million tons for the fifth consecutive year, the Japan Iron and Steel Federation said Monday.

Crude steel demand was hit by a drop in auto production and shipments following Daihatsu Motor Co.’s testing scandals, although auto production had been recovering thanks to an easing of semiconductor shortages.

“The situation changed” in the second half of the fiscal year due to the Daihatsu scandals, a federation official said.

Demand was also affected by delays in construction projects due to labor shortages.

In March alone, crude steel output fell 3.9 pct from a year before to 7.2 million tons, the first decline in four months. The result reflected a fall in converter steel production.

There are concerns that resource prices could rise further amid heightened tensions in the Middle East following Israel’s recent retaliatory attacks against Iran. “There will certainly be no positive impact,” a federation official said.

JIJI Press