Japan's crude steel production declines to financial crisis levels... Convenience store foot traffic also plummets

Japan Steel Federation Reports 31.8% Drop in Crude Steel Production Compared to Same Month Last Year
Largest Decline Since Financial Crisis
Automaker Shutdowns Cause Consecutive Hits

Convenience Store Sales Down 10.0% Last Month Compared to Last Year
Record High Decline in Customer Visits

[Image source=Yonhap News]

[Asia Economy Reporter Hyunju Lee] Due to the impact of the novel coronavirus infection (COVID-19), Japan's crude steel production in May significantly decreased.

According to the Japan Iron and Steel Federation's announcement on the 22nd, the total crude steel production of Japanese steel companies in May this year was 5.916 million tons, down 31.8% compared to the same month last year, marking a decline for three consecutive months. This rate of decrease is the largest since June 2009 (-33.6%) during the global financial crisis.

The sharp drop in Japan's crude steel production last month was due to production adjustments in response to the consecutive shutdowns of automobile manufacturers, which are major steel consumers, as well as the contraction in steel demand for construction and exports.

Japan Steel, the world's third-largest steel group by crude steel production, has suspended operation of Blast Furnace No. 1 at its Kimitsu plant in Chiba Prefecture since last month, and the Japanese steel industry is pushing for large-scale production adjustments reflecting the decrease in demand caused by COVID-19.

In this regard, a representative of the Japan Iron and Steel Federation expressed to local media that, given concerns about the resurgence of COVID-19, it is difficult to definitively say whether the current situation is the bottom of the recession.

Meanwhile, the Japan Franchise Chain Association announced that the sales of seven major convenience store chains in May this year totaled 809.5 billion yen, down 10.0% compared to the same month last year due to reduced outings and the impact of telecommuting amid the spread of COVID-19. Additionally, the number of customers visiting stores during this period sharply declined by 19.9%. The association stated that the year-on-year decrease rate in customer visits recorded by the convenience store industry in May this year is the largest ever.

This content was produced with the assistance of AI translation services.