According to the second quarter of fiscal year 2019 (July-September) forecast of Japan's Ministry of Economy and Industry, crude steel production will decline by 0.3% year-on-year to 26.04 million tons. Overall, steel production has increased, but due to the decline in construction and industrial machinery, Japan's domestic steel demand has declined and exports have increased. The metals department of MIMO pointed out that while domestic demand in Japan was slowing down, overseas uncertainties were also increasing, such as international trade frictions. Japanese steel companies are seeking new demand and adjusting inventories.

In the second quarter of fiscal year 2019, the production of common steel in Japan's blast furnace iron and steel enterprises will decrease by 540,000 tons, or 6.8 percent, compared with the same period last year. Due to the uncertainties brought about by trade frictions between the United States and China, stocks of H-beam, wire rod, medium and heavy plate and thin plate products have been reduced, by 440,000 tons, or 5.6% compared with the previous fiscal year. With the increasing demand related to the Olympic Games and through adjusting the stock, the stock of H-beam, small bar, hot-rolled sheet and galvanized steel sheet decreased. Compared with the same period in the previous fiscal year, it decreased by 20,000 tons, or 0.6%. Inventory of steel sheet pile, H-section steel, bar and other products related to the Olympic Games has decreased significantly.

In the second quarter of fiscal year 2019, the export of common steel from Japanese blast furnace iron and steel enterprises will increase by 620,000 tons, or 11.5% over the same period last year. Due to the recovery of equipment failure, the production of sheet metal and galvanized steel increased by 76,000 tons, or 14.5% compared with the same period last year. Affected by natural disasters, the exports of H-beam, medium and heavy plate and hot-rolled sheet decreased compared with the same period last year. The number of electric furnaces decreased by 20,000 tons, or 7.7% over the same period last year. H-section steel decreased by 60,000 tons, 18.9% compared with last year. Hot rolled sheets are also reduced.