In Japan's Kansai region, the hot-dip galvanizing industry faces a production downturn amidst sluggish demand in the civil engineering and construction sectors. Companies are unified in avoiding price wars and prioritizing profitability through securing orders at reasonable rates.

Data reveals that Japan's structural hot-dip galvanizing production in May reached approximately 70,000 tons, a modest 0.7% increase from last year. However, this marks the tenth consecutive month of negative growth since July last year, indicating persistent challenges.

In fiscal year 2023, despite a slight uptick in production volumes from May to June compared to the previous year, annual production remains on a downward trend, totaling about 930,000 tons, a decline for six consecutive years.

The decline in construction-related demand is particularly severe, with building materials decreasing by 7.8% (about 350,000 tons) and road projects by 7.5% (about 110,000 tons) in fiscal year 2023. While the Kanto region sees stable demand driven by metropolitan projects, the outlook remains grim in Kansai, with both large and small-scale projects experiencing stagnation.

Industry experts caution that galvanized product production has plummeted to unprecedented levels. Despite volume reductions, firms manage to sustain profitability through stringent pricing strategies and bolstering financial resilience against production declines.