Steel industry in Japan - statistics & facts

Despite the emergence of aluminum and plastics, steel has remained a commonly used material as it offers strength, malleability, and durability for a low price. Japan is one of the largest steel producers worldwide. Much of the home-produced steel is used domestically by several sectors, such as the construction and automotive manufacturing industries. Yet, Japan is also one of the largest steel exporters in the world. Japan lacks the necessary natural resources that are needed for steel production and heavily relies on imports of prime materials.
Steel will continue to be indispensable but the collective aim to achieve a carbon neutral economy is creating new challenges to the industry. To comply with society's expectations Japanese steelmakers will need to shift from traditional emission-intensive to carbon-neutral production methods.

Iron ore, coke, and heat: producing steel

In principle, producing steel, an alloy of iron with a small fraction of carbon, is straightforward: Heating a mix of those two elements until they react to the desired degree. In reality, the process is more complex. First, native iron hardly exists, hence the need for iron ore, which is abundant but made of iron oxides and dirt. In order to drive out the oxygen from this compound (reduction), the standard reducing agent used today is carbon in the form of coke. In the case of the prevalent blast furnace, coke reduces the iron oxides while providing extreme heat to melt it. Limestone binds coarse impurities and lowers the melting point. The resulting pig iron, an intermediary product, needs further processing in another furnace to remove the last impurities, such as excess carbon and slag. After adding optionally special ferroalloys and substances to the crude steel (special steel), steel is cast and rolled into various products.

Emission targets of Japanese steelmakers

The leading steelmakers in Japan – Nippon Steel, JFE, and Kobe Steel – have challenged themselves to achieve carbon neutrality by 2050. Without their actions, Japan can hardly attain its congruent national target, as emissions from the steel sector account for a high share of total emissions within the industrial sector. Fortunately, aside from carbon capture, usage, and storage (CCUS), there are palpable technologies to mitigate most of these, the simplest of which is to increase the share of steel scrap in production. An energy-saving method in the production process is to directly reduce iron without melting it. Moreover, one could opt for electric arc furnaces over basic oxygen furnaces for refining intermediary products. However, the most impactful way to save emissions during production is to use a carbon-neutral reducing agent such as green hydrogen. Each company has included these technologies in its strategic plans. Ultimately, the highest obstacle might be staying competitive when environmental investments melt more than steel profit margins.
This text provides general information. Statista assumes no liability for the information given being complete or correct. Due to varying update cycles, statistics can display more up-to-date data than referenced in the text.
Published by Alexandru Arba, May 31, 2023

Key insights

Crude steel production volume
96.34m t
Export value of iron and steel products
4.74tr JPY
Leading steelmaker
Nippon Steel Corporation
Get more insights

Editor’s Picks Current statistics on this topic

Leading companies in the iron and steel industry of Japan as of March 2022, by total assets (in trillion Japanese yen)

Metals

Major Japanese iron and steel companies 2022, by total assets

Producer price index (PPI) of iron and steel in Japan from 2013 to 2022

Metals

Iron and steel PPI in Japan 2013-2022

Crude steel production volume in Japan from 2012 to 2021 (in million tons)

Primary Metals

Crude steel production in Japan 2012-2021

Related topics

Recommended

5

Recommended statistics

Overview

6

Overview

Raw materials

7

Raw materials

Steel products

6

Steel products

Steel scrap

5

Steel scrap

Nippon Steel Corporation

5

Nippon Steel Corporation

JFE Holdings, Inc.

5

JFE Holdings, Inc.

Kobe Steel, Ltd.

5

Kobe Steel, Ltd.

Further reportsGet the best reports to understand your industry

Automobile industry in Japan
Automobile industry in Japan
Construction industry in Japan
Construction industry in Japan
Machinery industry in Japan
Machinery industry in Japan
Mining industry in Japan
Mining industry in Japan
Shipbuilding industry in Japan
Shipbuilding industry in Japan

Contact

Get in touch with us. We are happy to help.
Statista Locations
Contact Meredith Alda
Meredith Alda
Sales Manager– Contact (United States)
Email
support@statista.com

Mon - Fri, 9am - 6pm (EST)

Contact Yolanda Mega
Yolanda Mega
Operations Manager– Contact (Asia)
Email
asia.support@statista.com

Mon - Fri, 9am - 5pm (SGT)

Contact Kisara Mizuno
Kisara Mizuno
Senior Business Development Manager– Contact (Asia)
Email
support.japan@statista.com

Mon - Fri, 10:00am - 6:00pm (JST)

Contact Lodovica Biagi
Lodovica Biagi
Director of Operations– Contact (Europe)
Email
eu.support@statista.com

Mon - Fri, 9:30am - 5pm (GMT)

Contact Carolina Dulin
Carolina Dulin
Group Director - LATAM– Contact (Latin America)
Email
latam@statista.com

Mon - Fri, 9am - 6pm (EST)

Menu