Production and Technology of Iron and Steel in Japan during 2020

1. Overview of the Japanese Iron and Steel Industry

During 2020, a global disaster struck humanity, as the pandemic of the novel coronavirus or COVID-19 (hereinafter, coronavirus) spread to countries around the world, causing enormous economic damage and forcing a diverse range of substantial changes in the nature of society.

The global economy experienced an extremely large contraction due to the impacts of the coronavirus. In comparison with the previous year, the real growth rate in the world as a whole was –3.5% in 2020, and while Japan, the United States, Europe and India all suffered negative growth, only China recorded positive growth.¹⁾ The first COVID-19 infection was confirmed in Wuhan, China around the end of 2019,²⁾ and the disease then spread worldwide almost instantly and developed into a severe pandemic.³⁾ As a result, large-scale urban lockdowns and other restrictions on movement were ordered in every country, beginning with China, and economic activity stagnated. Subsequently, however, an economic recovery began as restrictions were eased, and the total global economy is now forecast to achieve +5.5% growth in 2021.¹⁾ Although vaccines are expected to control and ultimately end the coronavirus crisis, the fear of new infections and new mutant strains of the virus is a factor in concerns regarding the economic recovery.¹⁾ Moreover, it is also unclear how the change of administrations in United States will affect the trade friction accompanying the confrontation between the US and China.

The Japanese economy also experienced a large slowdown due to the coronavirus last year. The real GDP growth rate for the April-June quarter was −27.8%, which was the largest rate of decrease⁴⁾ since the World WarII. The Japanese economy, in which the nominal GDP growth rate has been essentially flat since the mid-1990s,⁵⁾ is truly in the midst of a “lost 30 years.” While nominal GPD approximately doubled or even increased by several times in some European countries and the United States between 1997 and 2019,⁶⁾ the increase in Japan during the same period was only about 3%.⁵⁾ The average wage fell to below the average for members of the Organization for Economic Cooperation and Development (OECD),⁷⁾ and scattered indications of progressing impoverishment can also be seen.

Amid these long-term economic trends, the stagnation of economic activity caused by the coronavirus was added to the problems of a collapse of consumer spending in reaction to a consumption tax increase in October 2019 and economic friction between the United States and China.⁸⁾ Public investment, which contributes to overcoming deflation with increased effective demand, peaked in FY 1995, fell to half in 2011,⁵⁾ and then returned to around 60% in FY 2019 due to moves to improve national resilience against natural disasters.⁵⁾ However, for example, as in the past, the progress of shinkansen construction failed to achieve its target, being limited to approximately 40%.^9,10) Based on the outlook for public investiment, it is almost impossible to find reports predicting strong long-term GDP growth in Japan. In the short term, even though 2021 is expected to see a rebound from the collapse of 2020, a re-spread of the coronavirus is also a concern, and several forecasts predict that the pace of recovery will be sluggish.^1,8,11)

Table 1 shows the top 10 crude steel producing countries last year.¹²⁾ The order of the top 3 positions has been unchanged since 2018. As a world total, crude steel production decreased slightly to 1863.98 million tons (−0.9% in comparison with 2019). China’s crude steel production continued to increase after exceeding 1 billion tons for the first time in 2019. India’s crude steel production had exceeding 100 million tons for 3 consecutive years beginning in 2017, but fell below that level in 2020.

Table 1. Top 10 crude steel production countries (Unit: Thousand tons).¹²⁾

Order	1990	1995	2000	2005	2010	2015	2016	2017	2018	2019	2020	Change Rate (%) 2020/19
1	USSR	Japan	China	China	China	China	China	China	China	China	China	+5.2
	154436	101640	128500	355790	638743	803825	807609	870855	928260	1001306	1052999
2	Japan	China	Japan	Japan	Japan	Japan	Japan	Japan	India	India	India	▲ 10.6
	110339	95360	106444	112471	109599	105134	104775	104661	109272	111351	99570
3	USA	USA	USA	USA	USA	India	India	India	Japan	Japan	Japan	▲ 16.2
	89726	95191	101803	94897	80495	89026	95477	101455	104319	99284	83194
4	China	Russia	Russia	Russia	India	USA	USA	USA	USA	USA	Russia(a)	+2.6
	66349	51589	59136	66146	68976	78845	78475	81612	86607	87761	73400
5	East/West Germany	Germany	Germany	South Korea	Russia	Russia	Russia	Russia	South Korea	Russia	USA	▲ 17.2
	44000	42051	46376	47820	66942	68695	69014	70537	72464	71575	72690
6	Italy	South Korea	South Korea	India	South Korea	South Korea	South Korea	South Korea	Russia	South Korea	South Korea	▲ 6.0
	25467	36772	43107	45780	58914	69670	68576	71030	72201	71412	67121
7	South Korea	Italy	Ukraine	Germany	Germany	Germany	Germany	Germany	Germany	Germany	Turkey	+6.0
	23125	27766	31767	44524	43830	42676	42080	43297	42435	39627	35763
8	Brazil	Brazil	Brazil	Ukraine	Ukraine	Brazil	Turkey	Turkey	Turkey	Turkey	Germany	▲ 10.0
	20567	25076	27865	38641	33432	33258	33163	37524	37312	33743	35658
9	France	Ukraine	India	Brazil	Brazil	Turkey	Brazil	Brazil	Brazil	Brazil	Brazil	▲ 4.9
	19016	22309	26924	31610	32948	31517	31642	34778	35407	32569	30971
10	UK	India	Italy	Italy	Turkey	Ukraine	Ukraine	Italy	Iran	Iran(e)	Iran(e)	+13.4
	17841	22003	26759	29350	29143	22968	24218	24007	24520	25609	29030
World Total	770458	752271	848934	1147975	1433432	1622938	1631341	1734921	1825565	1880137	1863980	▲ 0.9

(a) Estimated value based on actual results for 11 months.

(e) Values based on partial data or data other than WSA.

The crude steel production of the Japanese steel industry decreased substantially in 2020. Since first exceeding 100 million tons in 1972, Japan had maintained an annual level of about 100 million tons almost every year, but due to the decrease in demand for steel products caused by the coronavirus, Japan’s crude steel production decreased to 83.19 million tons in 2020 (−16.2% from 2019), and fell below the level of 87.53 million tons in 2009, after the financial crisis in 2008.¹³⁾

Blast furnace steel makers in Japan now consist of a 3-company system of Nippon Steel Corporation, JFE Steel Corporation and Kobe Steel, Ltd. following the merger of Nippon Steel and Nippon Steel Nisshin Co., Ltd. in April 2020. Although all companies are continuing to pursue reductions in fixed costs through structural measures, the decrease in demand caused by the coronavirus imposed a severe trial. Nippon Steel shut down all equipment at Kure Works, while JFE Steel decided to idle the upstream process at East Japan Works (Keihin District). Combined with other moves, this reduced crude steel production capacity by about 9 million tons will be reduced. Since an increase in domestic demand for steel products cannot be expected, companies are taking steps to further tighten capacity. On the other hand, world steel demand is expected to grow in the long term, and companies are searching for ways to capture overseas demand. Actually, joint ventures of the Japanese steel makers in the Chinese market posted good results even in 2020, as demand was firm during the year, and the same was also true for joint ventures in the Indian market, where crude steel production quickly recovered the level of the previous year following a contraction.

In technology, two keywords were the focus of attention: advanced IT (information technology) and CO₂ reduction. Efforts in advanced IT have now shifted from the development and introduction phases to the implementation phase, as could be seen in the results and progress achieved by introduction to blast furnaces. For CO₂ reduction, study of hydrogen reduction iron-making has begun, but efforts to realize zero carbon steel^14,15) envisioning carbon-free hydrogen and CO₂ capture and storage(CCS) and utilization (CCU) are also being promoted by an all-nation system. The Iron and Steel Institute of Japan (ISIJ), which aims at industry-academia collaboration, also recognizes the necessity of further promoting academic-based collaboration that transcends the framework of industrial fields. The following presents an outline of the environment surrounding the Japanese iron and steel industry in 2020 from the viewpoints of trends in raw materials for iron and steel, trends in steel-consuming industries and the condition of crude steel production in Japan and the world.

1.1. Trends in Raw Materials for Iron and Steel

Total iron ore production by the Big 3 (Rio Tinto, BHP and Vale) in 2020 was affected by the confusion caused by the coronavirus and a delayed recovery from the catastrophic failure of a tailings dam in Brazil in 2019, but nevertheless reached 841.47 million tons, for an increase of 2.2% from 2019, owing to the recovery of iron and steel production in the second half of the year.^16,17,18)

The spot price of iron ore (CFR China Fe 62%) temporarily fell from a monthly average of US＄93.9/ton in January to US＄83/ton level due to fears of a global economic collapse in March-April, when the coronavirus was spreading throughout the world, but then turned to a rising tendency against the backdrop of expanding demand in China, which allegedly brought infections quickly under control. The price of iron ore rose rapidly, to about 1.9 times that at the start of the year, and reached a monthly average of US＄158.2 in December.¹⁹⁾ On the other hand, where metallurgical coal is concerned, imports of Australian coal into China were effectively banned due to trade disputes between Australia and China arising from the response to the coronavirus crisis. As a result, upward pressure on the price of coal was weak in comparison with iron ore, and the rise in the spot price of Australian coal (heavy coking coal FOB) was limited to about 1.2 times, as the price increased from an monthly average of US＄69.7/ton in January to a monthly average of US＄83.0/ton in December.^20,21) However, due to the tight supply of metallurgical coal imports, the price of US coal and Canadian coal to China rose, and the price difference with Australian coal increased to more than US＄100/ton at one time.²²⁾

Figure 1 shows the long-term transition of world pig iron production and the annual average import prices of iron ore and metallurgical coal.^12,23) According to this figure, the annual average import price of iron ore bottomed out at US＄56.7/ton in 2016, then began to rise and reached US＄97.1/ton in 2020. The annual average import price of metallurgical coal also rose from US＄90.2/ton in 2016 to US＄159.0 in 2018, but then decreased substantially to US＄108.9/ton in 2020, falling to the same level as in 2014.

Fig. 1.

Transition of world pig iron production and unit price of imported iron ore & metallurgical coal (calendar year).^12,23)

1.2. Trends in Steel-consuming Industries

According to the Quarterly Report of Iron and Steel Supply and Demand²⁴⁾ and the websites of the Japan Automobile Manufacturers Association, Shipbuilders Association of Japan and Japan Electrical Manufacturers Association, the trends in steel-consuming industries in 2020 were generally as follows. For details, please refer to the original Japanese texts or the websites of the Japan Iron and Steel Federation (JISF), the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) and the respective industrial associations.

[Civil engineering] In civil engineering activities in FY 2020, an increase from FY 2019 is foreseen in the public sector. Orders received for public civil works increased, centering on landslide and flood control associated with the government’s national resiliency policy, and recovery and reconstruction following natural disasters, and thus showed an increasing trend in comparison with the previous fiscal year. In orders received for private civil works, while large-scale projects such as the Linear Chuo Shinkansen continued, orders decreased against FY 2019 because interruptions or delays in construction are expected due to reviews of capital investment plans in response to the coronavirus pandemic. In the civil engineering sector as a whole, an increase from FY 2019 is forecast.

[Construction] In the construction sector in FY 2020, residential construction showed a decreasing tendency from the previous year in the number of new housing starts due to the effects of the coronavirus pandemic, in addition to a continuing fall-off in construction of rental housing as a measure to reduce inheritance taxes. In nonresidential construction, the floor area of new construction starts showed a firm tone, supported by warehouses, logistics facilities, etc., but the trend was sluggish in other applications, again due to the effects of the coronavirus. A decrease from FY 2019 is foreseen in the construction sector as a whole.

[Shipbuilding] Due to the worldwide spread of the coronavirus, the world economy was stagnant and maritime trade also decreased. Moreover, the problem of excess ship capacity remained unsolved, and difficult conditions continued in the order receiving environment for shipbuilding with shipbuilders in Korea and China. Since these conditions are expected to continue for the time being, a decline in the volume of keels laid from the previous year is forecast.

[Automobiles] Domestic sales in FY 2020 initially decreased by a large number of units due to the effects of the coronavirus, but continued to recover beginning in the July-September quarter, and recorded an increase from the previous year in the October-December period.²⁵⁾ Although there was also a tone of recovery in exports of complete automobiles, exports are expected to fall below FY 2019 until the October-December quarter. As a result, decreases from 2019 are foreseen in both production of complete automobiles and consumption of steel products.

[Industrial machinery] In production activities in industrial machinery during FY 2020, both external demand and domestic demand decreased substantially due to the effects of the coronavirus. In construction machinery, although domestic demand for public projects was firm, an overall decrease from 2019 is foreseen. Machine tools showed a recovering tone owing to recovery of external demand centering on China, but there is a continuing outlook for decreased activity in comparison with the previous year. Results in the industrial machinery sector as a whole are expected to fall below the previous year.

[Electrical machinery] Looking at trends in electrical machinery in FY 2020, heavy electrical machinery showed a decline due to reviews of plans for coal-fired thermal power plant projects and restraints on capital investment in response to the pandemic. The tone was also sluggish in household electricals due to a decline in consumption caused by the coronavirus crisis and other factors. While demand for electronic components showed a firm trend against the backdrop of demand for personal computers in response to widespread adoption of “work from home” pandemic countermeasures, electrical machinery as a whole is expected to fall below the level of the previous year.

1.3. Crude Steel Production in Japan

Crude steel production in Japan during calendar year 2020 was 83.19 million tons, or a decrease of 16.2% from 2019. This volume was less than the 87.53 million tons in 2009, immediately after the financial crisis, and was in fact the lowest level in 51 years, since 1969.²⁶⁾ This historic decline was caused by a decrease in demand for steel products, particularly for automobiles, due to the coronavirus crisis, in addition to a slowdown in the growth of the global economy against the background of trade friction between the United States and China since last year.

From the beginning of FY 2020 (April 2020), crude steel production also decreased rapidly due to a sharp drop in demand. However, this trend bottomed out in June and turned to increased production, supported by the recovery of automobile unit production and firm domestic demand in China.²⁷⁾ Thus, in the midst of an “expensive raw materials/cheap products” market structure, 2020 saw a rush of price hikes from mid-year, and shortages of steel products occurred in the second half of the year owing to a faster-than-expected recovery of demand.²⁸⁾ For 2021, there are feelings of uncertainty about the future due to anxieties about a possible renewed spread of the coronavirus pandemic, etc., but both domestic and external demand are expected to rebound from the collapse of 2020, suggesting an overall trend toward recovery.⁸⁾

By furnace type, converter steel production was 62.05 million tons (decrease of 17.3% from previous year), electric furnace steel production was 21.15 million tons (decrease of 13.0% from previous year) and the ratio of electric furnace steel was 25.4% (increase of 0.9% from previous year) (Figs. 2, 3).^26,29) By steel type, production of plain carbon steel was 65.76 million tons (decrease of 13.0% from previous year), while production of special steel was 17.44 million tons (decrease of 26.4% from previous year) (Figs. 2, 3).^26,29) The continuous casting ratio of special steel has shown an essentially constant trend since 2014, at around 95%.

Fig. 2.

Transition of crude steel production in Japan (calendar year).²⁶⁾

Fig. 3.

Crude steel production and continuous casting ratio for ordinary steel and special steel.²⁹⁾

1.4. World Crude Steel Production

World crude steel production in calendar year 2020 was 1863.98 million tons, which was a slight decrease of 0.9% in comparison with the 1880.13 million tons of the previous year.¹²⁾ Looking at the crude steel production of the major steel-producing countries, China recorded an increase of 5.2% from 2019, reaching 1053.00 million tons, while both No. 2 India and No. 3 Japan suffered large drops, as production decreased by 10.6% in India, falling to 99.57 million tons, and by 16.2% in Japan, to 83.19 million tons (Table 1). Large decreases in production volume from the previous fiscal year were also seen in the EU and the North and South America, which were seriously affected by the coronavirus.

Crude steel production in China exceeded 1000 million tons for the first time in 2019, and continued to increase in 2020, reaching 1053.00 million tons (+5.2% in comparison with 2019).¹²⁾ In spite of the coronavirus pandemic, expanded investment under a proactive fiscal policy, etc. pushed up steel consumption, and crude steel production increased corresponding to this increased demand. Because real GDP growth of +8.1% is forecast for China in 2021,¹⁾ and the country’s economic policies are also seen as accelerating demand growth, a 1.4% increase in crude steel production is forecast.³⁰⁾ On the other hand, downward pressure on the scale of this increase is also possible, as power outages occurred in various areas during the winter of 2020–2021 due to power shortages,³¹⁾ which were allegedly generally attributed to the country’s ban on imports of coal from Australia, and adverse factors affecting the business climate³²⁾ can also be seen, including default on corporate bonds by state-owned companies. Moreover, it is presumed that large excess production capacity still exists in the Chinese steel industry. In comparison with China’s apparent crude steel consumption in 2019, which did not exceed 1000 million tons,³³⁾ the country’s crude steel production capacity in 2019 was estimated at 1150 million tons.³⁴⁾ Thus, China’s excess production capacity exceeds the crude steel production of India or Japan. Signs of revival of production of ditaiogang (inferior quality induction furnace steel produced from scrap) were reported in 2020,³⁵⁾ which was once reported in 2019 and there are also fears that the huge scale of China’s excess production capacity may become a disrupting factor affecting the condition of the steel market.

India’s crude steel production in 2020 was 99.57 million tons (–10.6% in comparison with 2019). Although the country had exceeded 100 million tons for 2 consecutive years beginning in 2017, it has now failed to reach 100 million tons in 2020.¹²⁾ Due to the effects of the coronavirus, domestic demand in India decreased rapidly in 2020, but automobile sales hit bottom in April and unit sales recovered thereafter.³⁶⁾ As a result of these and other factors, crude steel production also made a rapid recovery beginning in May and returned to the same level as in 2019 in August, and that trend is now continuing.²⁷⁾ As the outlook for the domestic business climate as a whole, the pace of recovery is expected to be moderate due to inadequate fiscal policies and delayed monetary easing,³⁷⁾ but the IMF’s real growth forecast (against the previous year) predicts –8.0% growth for 2020 and +11.5% growth in 2021 (slightly under +3% in comparison with 2019). Because India possesses both abundant iron ore resources and a large potential market for steel products, the Indian market is considered to have high potential for the development of the steel industry. However, around the beginning of 2021, the Indian government announced a policy of further strengthening procurement of domestic products for steel products used in public projects.³⁸⁾ Although India’s crude steel production has exceeded Japan’s since 2017, apparent steel consumption by crude steel conversion was still on the scale of approximately 100 million tons in 2018.³⁹⁾ Thus, at least in quantitative terms, a market composition in which both iron ore resources and steel products can be supplied domestically is expected to continue for the time being.

2. Technology and Equipment

In 2015, a plan compiled by Japan’s Ministry of Economy, Trade and Industry (METI) identified four issues confronting the metallic materials industry: i) Sophistication and diversification of user needs for materials; ii) Threat of overseas competitors catching up; iii) Decrease of domestic demand and limiting factors such as energy/environmental restrictions and human resource/equipment restrictions; and iv) Impact of digitalization on reform.⁴⁰⁾ As strategy for technology development, the plan proposed development of material design technologies, development of manufacturing technologies, development of analysis and evaluation techniques, human resource development, preventive maintenance utilizing digital data, development of effective utilization technologies for resources and energy, and development of materials considering environment impacts. In strategy for strengthening domestic manufacturing infrastructure, the plan mentioned prevention of industrial accidents, strengthening of competitiveness by business reorganization, response to energy and environmental problems and response to changes caused by digitalization, while global strategy proposed resource circulation, including recycling, as one strategy for responding to the risks related to raw material supplies. All Japanese steel makers are promoting technology development and introduction of equipment in line with these directions and issues.

Recently, digitalization and networks have spread rapidly at the global scale, and the Internet of Things (IoT), artificial intelligence (AI), sensors, biometric authentication and robotics are progressing. Technological development utilizing these achievements is being promoted, centering on the field of monodzukuri, or Japanese-style manufacturing. The aims of Japan’s 5th Science and Technology Basic Plan include the creation of future industries and social transformation by ensuring the permeation of achievements in science and technology in all fields and regions, and defines these efforts to realize the world’s first “super smart society” as “Society 5.0.” With the progressive fusion of “information space” (cyberspace), “real space” (physical space) and also extending to “psychological space” (brain, etc.), acquisition, integration, analysis and platforming of information and data in cyberspace have become critical. Against this backdrop, all major integrated steel makers are continuing to grapple with operation and equipment maintenance at production sites, research and development and product development by applying AI technology.

As countermeasures for global warming, the steel industry has declared that it will make efforts to reduce volume of greenhouse gas (GHG) emission by 80% by the year 2050, with the aim of realizing a “decarbonized society” as early as possible in the second half of the 21st century. In addition, in order to realize a more feasible social implementation cost by promoting innovation, the “Progressive Environmental Innovation Strategy” calls for measures such establishing clear goals such as costs, setting issues, etc., and proposes efforts for the mid-term.⁴¹⁾

Against this backdrop, the Japanese steel industry is steadily promoting product development that meets user needs, as exemplified by the development of ultra-high strength steels with high formability, in order to meet increasing competition between materials, while continuing to consider cooperation between materials, such as the pursuit of new value by combining different materials. The following introduces the main trends in technology and technical topics at the Sustaining Members of the ISIJ by field of iron and steel technology.

2.1. Iron-making

Pig iron production in calendar year 2020 was 61.60 million tons, which was a decrease of 17.8% from the previous year.²⁶⁾ To cope with the sharp drop in steel demand, Nippon Steel Corporation moved up the schedule for relining Muroran Works No. 2 BF at its subsidiary Hokkai Iron & Coke Corporation and implemented banking* at a total of 4 blast furnaces, including East Nippon Works Kashima Area No. 1 BF (April 2020 to January 2021) and Kimitsu Area No. 2 BF (June to November 2020) and Kansai Works Wakayama Area No. 1 BF (April 2020, continuing) and Setouchi Works Kure Area No. 2 BF (February 2020, continuing). In July 2020, the company also idled Kyushu Works Kokura Area No. 2 BF. JFE Steel Corporation carried out banking^* at its West Japan Works (Fukuyama District) No. 4 BF (June to September 2020), and also blew out and began relining work at West Japan Works (Kurashiki District) No. 4 BF in April 2020. As a result of these moves, 20 blast furnaces were in operation at the end of 2020, including 12 BFs with inner volumes of 5000 m³ or larger. In comparison with the end of 2019, the number of operating blast furnaces decreased by 5 (3 banked, 1 idled, 1 under relining), and the number of BFs of 5000 m³ scale decreased by 2.

As part of a review of its production system, JFE Steel announced that it will shut down iron-making facilities at East Japan Works (Keihin District) including No. 2 BF, a shaft furnace, No. 1 sintering machine, and No. 1 and No. 2 coke ovens, to be completed by September 2023.

In equipment improvement, repair and new introduction, Nippon Steel completed the above-mentioned relining of Hokkai Muroran No. 2 BF and announced plans to reline Nagoya Works No. 3 BF in 2022. JFE Steel announced plans to reline East Japan Works (Chiba District) No. 6 BF, also in 2022. Kobe Steel, Ltd. developed a system for prediction of the blast furnace heat level by AI and began operation of the system at Kakogawa Works No. 2 BF in August. JFE Steel completed a medium-scale ferrocoke production plant (production capacity: 300 t/d) which had been under construction at West Japan Works (Fukuyama District), and started demonstration tests in October 2020 as part of “Environmentally Harmonized Steelmaking Process Technology Development/Development of Ferrocoke Technology,” a joint project being carried out with Japan’s New Energy and Industrial Technology Development Organization (NEDO), Nippon Steel and Kobe Steel.

*   Banking: Method of temporarily stopping (idling) a blast furnace by stopping the blast, while maintaining a condition in which restarting is possible.

2.2. Steelmaking

Crude steel production in Japan during calendar year 2020 was 83.19 million tons, a decrease of 16.2% from the previous year (Table 1).²⁶⁾ As part of a review of its production system, Nippon Steel announced a shutdown of part of No. 3 caster at Kansai Works Wakayama Area, which is scheduled for the first half of 2022. JFE Steel announced a shutdown of steelmaking facilities at East Japan Works (Keihin District) affecting converters, No. 1 electric furnace and No. 1, No. 3 and No. 5 continuous casters, to be completed by September 2023.

Among trends in new equipment introduction, Nippon Steel plans to modernize the cold iron source melting process at Setouchi Works Hirohata Area to an electric furnace process in 2022.

Although the price of magnesia-based refractories had increased since 2017 because the imposition of stricter environmental regulations in China, resulting in reduced supplies of raw materials such as magnesia, which is used as a raw material for magnesia-based refractories, the price began to decrease from the second half of 2019 owing to the effects of the slowdown of the global economic growth. However, from the fall of 2020, steel production in China showed a firm trend, and prices began to rise once again due to a tight supply-and-demand condition caused by further strengthening of environmental regulations on magnesia mines.⁴²⁾ In addition, the price of graphite electrodes had shown a rising tendency due to a tight supply-and-demand condition for the needle coke used as a raw material, but the price declined in 2020 due to decreased production of iron and steel.^43,44)

The price of manganese ferroalloys, beginning with ferromanganese, showed a rising trend in the second half of 2020 due to an increased sense of tight supplies because of the delayed recovery of production in the main producing countries of Europe and South Africa following the spread of the novel coronavirus pandemic, and this became a factor that drove up steelmaking costs.⁴⁵⁾

As an example of development results that were publicly recognized in society, JFE Steel’s “Development of environmentally harmonized high quality stainless steelmaking process” received the Commendation for Science and Technology (Prize for Science and Technology: Development Category) of the Minister of Education, Culture, Sports, Science and Technology (MEXT) for FY 2020.

2.3. Steel Products

2.3.1. Sheets

In the field of automotive steel sheets, weight reduction by the use of high strength steel sheets is strongly demanded for further improvement of fuel economy, and the applications of high tensile strength steel sheets (Hi-Ten) are expanding. A 1.5 GPa (1470 MPa) class cold-rolled Hi-Ten product for cold pressing developed by JFE Steel was adopted in automotive frame parts for the first time in the world as a cold-press application. 1.5 GPa class cold-rolled Hi-Ten is already used in parts with simple shapes, beginning with bumpers and door impact beams, but due to the problems of poor press formability and delayed fracture, application of cold-rolled Hi-Ten to body frame parts with complex shapes had been limited to the 1310 MPa class. Although application of 1.5 GPa class Hi-Ten by hot stamping is also progressing, the increased production cost due to the time required for heating and cooling was an issue. JFE Steel realized application of 1.5 GPa class cold-rolled Hi-Ten to automotive frame parts by simultaneously satisfying high yield strength in combination with the press formability equal to the 1310 MPa class and delayed fracture resistance characteristics with addition of alloying elements and the reduction of non-uniformity of microstructure to the limit by applying an original water quenching-type continuous annealing process.

Weight reduction by application of higher strength materials is also strongly required in automotive suspension springs. Although realizing high strength in the standard steel SUP12 based on improved spring processing technology in recent years has been studied, decreased toughness and lower resistance to hydrogen embrittlement associated with high strength were challenges. To address these issues, Nippon Steel developed a low alloy, high strength steel for suspension spring use with improved toughness and resistance to hydrogen embrittlement with a lower addition of alloying elements than in the conventional steel. In this steel product, higher toughness is achieved by refining the austenite grain size by Ti addition, and delayed fracture resistance characteristics are improved by adding B to suppress segregation of P and precipitation of grain boundary carbides, while also maintaining the tempering temperature by addition of comparatively inexpensive Si and Cr.

In the field of electrical steel sheets, steel makers are developing high functionality electrical steel sheets that can contribute to energy saving while continuing to reduce environmental impacts. In recent years, reduction of iron loss in the high frequency region has been demanded in electrical steel sheets in response to the trend toward higher drive frequencies accompanying the downsizing of motors, transformers and other electrical equipment. Heavier addition of Si, which increases the electrical resistance of steel, is effective for reducing iron loss in the high frequency region, but at the same time, decreased saturation magnetic flux density and reduced motor torque were problems. JFE Steel developed a Si-gradient magnetic material with an increased Si concentration in only the surface layer by utilizing a CVD (chemical vapor deposition) continuous siliconizing process, which received the Prime Minister’s Prize in the “8th Monodzukuri Japan Grand Awards.” JFE Steel also developed another Si-gradient magnetic material for use in high speed motors which reduces high frequency iron loss while maintaining magnetic flux density on the same level as in conventional non-oriented electrical steel sheets, making it possible to satisfy both high motor torque and greatly improved motor efficiency, by control of the Si concentration distribution and crystal orientation by optimization of the amount of siliconizing and diffusion conditions in the same process technology.

As an example of development results recognized by prestigious awards, Nippon Steel developed a manufacturing technology for high strength hot-rolled steel sheets using a new high accuracy flatness gauge, which received the Commendation for Science and Technology (Prize for Science and Technology: Development Category) of the Minister of Education, Culture, Sports, Science and Technology (MEXT) for FY 2020. This technology enables stable production of steel sheets with excellent mechanical properties by automatic mill control based on highly accurate measurement of the transverse distribution of strain (i.e., flatness) in steel sheets during hot rolling.

As another example, a temper rolling mill that realizes the world’s highest speed, which was developed by JFE Steel, received the 54th Japan Society for the Promotion of Machine Industry Chairman’s Prize. This technology utilizes an intelligent control technology which represents a fusion of various types of sensor data and optimization and simulation techniques in real time to improve product quality over the full length of the steel strip and enable stable rolling at the world’s highest speed of 800 m/min by highly accurate automatic control of the steel strip shape, elongation and lateral walking.

2.3.2. Plates

In the field of steel plates, a high arrestability extra-heavy steel plate for ultra-large-scale container ships developed by JFE Steel received the 66th (FY 2019) Okochi Memorial Technology Prize. Container ships, which are loaded with many containers, have large openings in the upper part of the deck. Because the hull is affected by the load of large waves during maritime navigation, heavy gauge, high strength steel products are used in the upper deck and hull sides. In recent years, with the advent of ultra-large-scale container ships with container loading capacities exceeding 20000 containers, the thickness of steel plates has expanded from 50 mm to 100 mm, and high strength steels with yield strength up to 460 MPa class are now demanded. However, the crack arrestability necessary to stop brittle crack propagation also increases as the plate thickness of steel products becomes larger. To overcome this problem, JFE Steel established a technology which increases the ratio of crystal grains with orientations that resist crack propagation in the plate center-of-thickness region by utilizing a thermomechanical control process (TMCP) technology enabling detailed control of the heating temperature and rolling temperature, thereby making it possible to secure high arrestability even in extra-heavy high strength steel plates with a thickness of 100 mm, which is the world’s largest thickness.

2.3.3. Pipes

Hot-formed seamless square steel pipes produced by JFE Steel were adopted in the Pavilion Building of CLT Park Harumi. This product is the only seamless square steel pipe manufactured in Japan by hot seamless forming, and received the approval of the Minister of Land, Infrastructure, Transport and Tourism (MLIT) in March 2014. Featuring a small-diameter, thick-walled cross section, the product enables effective utilization of space and space-saving when used in building columns, and can also be used effectively as a design material. In CLT Park Harumi, an outstanding design was realized by a collaboration of steel and wood materials, while providing resistance to seismic forces in two directions by using this steel pipe, which has a small-diameter, with thick-walled square cross section.

A stainless steel for use under high pressure hydrogen, manufactured and sold by Nippon Steel and Nippon Steel Stainless Steel Pipe Co., Ltd., was adopted in the Toyosu Hydrogen Station, which was constructed jointly by Tokyo Gas Co., Ltd. and the Japan Hydrogen Station Joint Company (Japan H₂ Mobility, LLC, abbreviated JHyM). Because hydrogen embrittlement does not occur even under high pressure hydrogen environments, this steel realizes long life and improved safety in hydrogen stations. Since a thin-walled design and expanded inner diameter can be realized in piping owing to the high strength of this product, a high flow rate and faster filling of hydrogen are possible. In addition, welds have the same strength and hydrogen embrittlement resistance as the base material; this makes it possible to use welding in many joints where mechanical joints had been used conventionally, and thus contributes to more compact hydrogen stations.

JFE Steel and JFE Container Co., Ltd. carried out development of a pressure vessel for hydrogen stations and completed commercialization of Japan’s first domestically-manufactured Type 2 pressure vessel for hydrogen stations in FY 2018. The Type 2 pressure vessel manufactured by JFE was adopted first in the Toyota Hoei Hydrogen Station (Aichi Prefecture) and operation began in December 2020. As distinctive features, the JFE Type 2 pressure vessel has a wide applicable pressure range and can supply a large amount of hydrogen to fuel cell vehicles (FCV) in one fueling operation. For this reason, it is expected to be adopted in stations that supply fuel cell buses and large numbers of vehicles, and a further heightening of needs is foreseen in the future with increasing popularization of FCVs. This pressure vessel, which was designed by JFE Container, is manufactured by wrapping carbon fiber around the cylindrical part of a steel liner made from a steel pipe produced by JFE Steel. Pressure resistance performance is optimally shared by the steel and carbon fiber, realizing long life in the high pressure range, while the adoption of a simple straight shape made it possible to simplify the liner manufacturing and carbon fiber wrapping processes, reduce costs by decreased consumption of carbon fiber and simplify maintenance by utilizing a large diameter design.

2.3.4. Bars and Shapes

Nippon Steel began sales of the world’s largest fixed outer dimension H-shape among H-shape products produced by rolling. The company established a rolling process for product web heights up to 1200 mm, which exceeds the existing large-sized product by approximately 20%, and began sales in April 2020 with a full size menu centering on large section sizes. The large shape mill at Nippon Steel’s Kansai Works Wakayama Area (Sakai), which is the production base, began operation in October 1961 as Japan’s first large shape steel mill to adopt the universal mill. To date, this plant has supplied a variety of new products to world markets, including the world’s largest class extra-heavy thickness H-shape and hat-shaped steel sheet piles. As part of this history, fixed outer dimension H-shapes, which the plant began producing and selling in 1989, realized design simplification and labor-saving in processing work by a fixed web height and flange, which was made possible by the introduction of a revolutionary manufacturing process. These products have earned the confidence of users thanks to a wide range of variations, excellent dimensional and shape accuracy and on-time delivery, together with an expanded size menu in the years that followed.

2.4. Measurement/Control/Systems

In measurement-related developments, JFE Steel received the JSPMI Chairman’s Prize of the 55th Prize of the Japan Society for the Promotion of Machine Industry (JSPMI) for “Surface inspection device utilizing twin-illumination and subtraction method.” The company independently conducted research and development on the device, which can emphasize and detect only concave/convex defects and introduced this technology at production lines that produce non-pickled steel products such as steel pipes and plates at the seamless pipe mill and ERW (electro-resistance welded) pipe mill at Chita Works and at the plate mills at East Japan Works (Keihin District) and West Japan Works (Fukuyama District), and is contributing to prevention of inadvertent release and improved surface quality of products. JFE Steel also received the FY 2020 Japan Institute for Promoting Invention and Innovation Chairman’s Award of the National Commendation for Invention for “Invention of device for measurement of minute concave/convex flaws of steel sheets by magnetic flux leakage testing method” and succeeded in automatic detection of microscopic surface flaws by detecting changes in the magnetic characteristics of steel sheets caused by strain at defective parts by the magnetic flux leakage testing method. This invention has improved the productivity of high quality steel sheets for automotive applications by making it possible to automate inspections that had depended on manual work until now, and has enabled sure quality assurance of steel sheets by eliminating grindstone inspections, which had depended on the senses of experienced technical personnel. The automatic detection technology of this invention also received the “Chugoku Regional Invention Commendation of the Minister of Education, Culture, Sports, Science and Technology (MEXT) Prize” in October 2017 and the “JSPMI Chairman’s Prize of the Prize of the Japan Society for the Promotion of Machine Industry (JSPMI)” in February 2019.

Beginning 2 or 3 years ago, companies began to establish specialized departments focusing on IT technology, particularly in the integrated steel makers. Continuing this trend, in 2020, Nippon Steel caried out a reorganization and functional reconstruction of its organization for digital transformation (DX), including creating a “Digital Innovation Division” in April of 2020, in order to further strengthen its business competitiveness by actively utilizing data and digital technologies. The new organization will accelerate the implementation of business and production process innovation by enabling an integrated response to company-wide cross-sectorial issues related to production and maintenance sites, sales and production planning, earnings management, etc. and strengthening data management, which is the foundation for those activities. JFE Steel also established the JFE Digital Transformation Center with the aims of realizing innovative productivity improvement and stable operation by actively promoting DX, for example, by realizing a cyber-physical system (CPS) in production processes. In the future, these efforts will contribute to realizing a sustainable society by solving problems at production sites in all fields through DX.

In the field of operation support systems, Kobe Steel developed a “Blast furnace heat prediction system by AI” and began operation at Kakogawa Works No. 2 BF in August 2020. The system makes it possible to predict the temperature of the molten pig iron 5 hours in advance automatically and with high accuracy, and thus contributes to advance prevention of operational trouble such as furnace temperature drops, and to more stable operation. As a system that enables “furnace heat prediction,” the prediction system which was started up last year calculates the hot metal temperature 5 hours in advance based on input of the reaction heat and heat dissipation with a mathematical model with multiple parameters. As distinctive features, it can reproduce long-term furnace heat changes based on the operational results for the past several tens of hours so as to maximize predictive accuracy. In particular, it was designed to enable searches for the optimum parameters by AI so that the furnace heat results in the most recent hours can be reproduced with extremely high accuracy. Moreover, once permeability prediction is also automated, optimum judgment and action can be performed automatically by AI in blast furnace operation under low coke rate conditions. It may be noted that is one of the achievements of the AI Promotion Project Department established by Kobe Steel in October 2018.

JFE Steel developed and started operation of a Guidance System for Fuel and Power Management in Steel Works to support operation by operators with the aims of energy-saving, reduction of CO₂ and cost minimization in fuel and power operation at its domestic steel works. To date, the operational effects of introduction and use of this system have been verified at West Japan Works (Kurashiki District, Fukuyama District), and in the future, it will be introduced at other plants to realize further energy savings and CO₂ reduction. Until now, fuel and power management had been premised on the byproduct gas supply-and-demand situation at the present point in time and the daily production plan, but with the introduction of this system, appropriate supply-and-demand adjustment of storage and delivery of byproduct gases has become possible based on highly accurate predictions of fuel and electric power supply and demand using real-time measured data and production plans. As a result, it is now possible to optimize the amount of purchases of city gas and power. In comparison with conventional operation based on the experience and abilities of operators, more efficient operation is possible, and energy-savings, CO₂ reduction and reduced fuel and power costs have been realized.

JFE Steel also developed Smart Crane operation system for Coil Warehouses for the automatic overhead travelling cranes used as material handling equipment in coil product warehouses, and has begun company-wide deployment. A large increase in shipping capacity was realized by the introduction of this system and optimization of work schedules and the arrangement of coil products. The Smart Crane operation system developed in this work has realized improved efficiency and automated operation in warehouse receiving and shipping work by automatically optimizing the coil handling sequence based on operating and shipping plans, etc. by a “Scheduling program.” In addition, the “Coil arrangement optimization function,” which is one function of the program, has realized a broad reduction in waiting time for receiving and shipping at warehouses by reducing “digging out” work, which is necessary when other coil products have been stacked on top of a target coil, by placing coils in the ideal arrangement during waiting. Up to October 2020, introduction of this system had been completed at 6 automatic cranes operating in the coil product warehouses in West Japan Works (Fukuyama District), and had realized a large increase in shipping capacity, for example, by eliminating the need for waiting time for coil product conveying, which had been a problem until now.

JFE Steel and NEC Solution Innovators, Ltd. received the FY 2019 Japanese Society for Artificial Intelligence (JSAI) Field Innovation Award Gold Prize for “Development of safe action support system utilizing human action analysis software.” In the safe action support system recognized by this award, the AI program first learns images of workers and equipment in the plant, and then automatically identifies moving objects from images acquired by cameras installed in the plant and provides support so that workers can take safe actions. The system was developed by NEC Solution Innovators and introduced by JFE Steel.

Regarding equipment and operation monitoring systems, Nippon Steel adopted an AI analysis program utilizing the AI technology “System Invariant Analysis Technology (SIAT)” produced by NEC Corporation, and began a long-term operation test in online monitoring of the equipment operation status at its East Nippon Works Kimitsu Area in January 2021 as a step toward implementation of an equipment status monitoring platform in its steel works. Using offline data, this program was applied to trouble with a high degree of solution difficulty, which had required 10 days to clarify the cause, and demonstrated that the signs of trouble can be detected in advance. Nippon Steel aims to prevent trouble in advance and improve the efficiency of equipment inspections and operational monitoring by learning and modeling the behavior of equipment and devices by AI based on the data for more than 2000 measurement items (current, temperature, pressure, control signals, etc.) collected by 500 physical sensors placed in various production processes.

Beginning in April 2020, JFE Steel and KDDI Corporation introduced a 5G mobile communications system at JFE’s East Japan Works (Chiba District), and are promoting stable operation and smart factorization at JFE Steel through utilization of 4K images, etc. The features of 5G include high speed, large capacity, low delay and connectivity with multiple terminals. Use of 5G technology in the network environment of production site environments, where stability and real-time performance are required, makes it possible to collect the large volumes of data acquired by various types of sensors together and perform integrated control of all equipment, enabling optimization of the production site as a whole. In addition, 5G is also expected to contribute to further promotion of smart factorization and DX in production plants in the forms of productivity improvement, response to free layout changes in plants, and support for co-operation of equipment and workers. As Step 1, in April 2020, JFE Steel installed high-definition ITV cameras and KDDI 5G base station to monitor the production line in the hot strip mill at East Japan Works (Chiba District), and constructed a system capable synchronizing and analyzing accumulated images and various types of trouble by transmitting the 4K images captured by the cameras by 5G. After trial operation, the system was put into actual operation from May of last year.

JFE Steel also introduced a Mixed-reality Training Simulator that utilizes state-of-the-art mixed reality technology at West Japan Works. This is the first system in the Japanese steel industry which makes it possible to practice highly skilled production site work in a steel works on the same level as in actual operation by using cutting-edge virtualization technology. In this project, a training simulator for control of the molten steel pouring amount at the continuous caster was developed, and operation has already started. Since the operation scenarios include not only normal operational changes, but also anomalous situations, beginning with blockage of the nozzle used to control the pouring amount, training in unexpected operational changes and anomalous situations can be carried out in advance in an environment similar to that in the actual work. Because new scenarios can be added easily, it is also possible to respond whenever necessary by adding scenarios for various anomalous situations. Practice with the system prior to OJT not only reduces operational and safety risk in comparison with the conventional method, but also allows operators quick judgments and actions when faced with anomalous situations.

2.5. Construction and Civil Engineering

Nippon Steel received the EcoLeaf Environmental Label, which is certified by the Sustainable Management Promotion Organization (SuMPO) for fixed outer dimension H-shapes with large section sizes up to a product web height of 1200 mm. EcoLeaf is an international certification system which publishes quantitative environmental information considering the total life cycle of products from resource extraction through production, distribution, use, and disposal and recycling. Based on this, customers can objectively evaluate the environmental impacts of the products they use. This trend of publishing the environmental performance of iron and steel products is expected to accelerate based on an awareness of the “Sustainable Development Goals” (SDG), which were the subject of a Special Issue of the Bulletin of the Iron and Steel Institute of Japan (Ferrum) in issue No. 12 of 2020.

2.6. Environment and Energy

2.6.1. International Negotiations and Efforts of the Japanese Government on Climate Change

According to an analysis by the International Energy Agency (IEA), it is necessary to achieve net-zero emissions of greenhouse gases (GHG) by 2070 to realize a temperature increase of less than 2°C. At the national level, in June 2017, Sweden became the first country to announce a goal of net-zero emissions. Subsequently, in 2019, the European Union (EU) adopted a goal of net-zero emissions within the EU to be achieved by 2050, and in the second half of 2020, Asian nations including Japan, China and Korea successively announced net-zero emissions targets. Although the United States formally withdrew from the Paris Agreement in November 2020, President Biden, who took office in January 2021, signed an executive order aimed at reducing emissions of GHG, and the US returned to the Paris Agreement and has also announced a goal of achieving net-zero emissions in the economy as a whole by 2050.

In May 2016, Japan established the Plan for Global Warming Countermeasures based on the Act on Promotion of Global Warming Countermeasures in order to promote global warming countermeasures comprehensively and in a planned manner. This plan sets a mid-term target of reducing GHG by 26% by FY 2030 from the baseline of FY 2013, and a long-term target of an 80% reduction of emissions of GHG by 2050. In April 2018, Japan adopted the 5th Basic Environmental Plan, which presents the future directions for the development of environmental policies such as the Sustainable Development Goals (SDGs), creation of innovation based on the Paris Agreement and simultaneous solution of environmental and socioeconomic problems. The 5th Strategic Energy Plan was also adopted in July 2018 and presented the basic directions for energy policy. The plan mentions efforts to surely realize an energy mix for a 26% reduction in GHG as a response to the target for 2030 and the challenge of energy transition and decarbonization aiming at an 80% reduction in GHG for 2050, and also calls for pursuing the possibilities of all options. In June 2019, the Cabinet Office adopted the Long-Term Strategy under the Paris Agreement as a Growth Strategy, which aims at realizing a “decarbonized society” as early as possible in the 2nd half of the 21st century and reiterates the call for an 80% reduction in GHG by 2050. As cross-sectoral measures for realizing a virtuous cycle of the environment and growth, the “Progressive Environment Innovation Strategy” calls for setting clear goals such as costs, setting issues, etc. in order to realize a cost that allows social implementation by promoting innovation, and presents an outline of mid-term efforts.⁴¹⁾ In the energy field, this strategy mentions “pursuing every option,” including renewable energy as the main source of electric power, reducing CO₂ emissions from thermal power, CCS, CCU and carbon recycling, and realizing a hydrogen society, storage batteries, nuclear power, energy saving, etc. In the industrial field, the proposals for “decarbonized manufacturing” include the use of CO₂-free hydrogen, exemplified by the challenge of “zero-carbon steel” and feedstock change by CCU such as artificial photosynthesis and biomass utilization. As a target, the JISF’s “A challenge towards zero-carbon steel” mentions the development of “super innovative technologies” such as a hydrogen-reduction iron-making process that achieves the same cost as iron-making by the existing blast furnace route. As conditions for practical application, the proposal mentions stable supply of a large volume of CO₂-free hydrogen at a cost lower than the target hydrogen cost of \20/Nm³ (plant delivery cost) for 2050.

The Paris Agreement and the decision of COP21 in 2015 stipulated that the Parties are to prepare, communicate and maintain nationally determined contributions (NDCs) as reduction goals to be achieved by 2020, and requests that each country revise or communicate its NDC by 2020 and submit the result to the Convention Secretariat. In March of 2020, Japan determined its NDC, which includes 1) Resolutely achieve the current mid-term target of a 26% reduction by FY 2030 from the FY 2013 baseline, and pursue further reduction efforts and begin a review of the Plan for Global Warming Countermeasures, 2) Aim at aspiring figures to reflect further ambitious efforts building on policies and measures for all GHGs, and 3) Achieve a decarbonized society as close as possible to 2050 based on its Long-term Strategy under the Paris Agreement as Growth Strategy, clearly stating that it will strengthen climate change countermeasures and contribute to a decarbonized society based on this INDC (Intended Nationally Determined Contribution) in the future.

2.6.2. Efforts of the Japanese Steel Industry

The Japan Iron and Steel Federation (JISF) is continuing the Voluntary Action Programme of the Iron and Steel Industry implemented during the First Commitment Period of the Kyoto Protocol, and is currently promoting Commitment to a Low Carbon Society – Phase I, with a target of FY 2020. In November 2014, the JISF established Phase II of the Commitment to a Low Carbon Society, targeting FY 2030, anticipating the setting of Japan’s INDC for GHG emissions. The basic concepts of these voluntary activities are four pillars: the three “eco” approaches of “Eco-Processes,” “Eco-Products” and “Eco-Solutions” and “Innovative Technology Development”.⁴⁶⁾ In FY 2019, the CO₂ emissions of the companies participating in the Commitment to a Low Carbon Society were 171.64 million tons on a BAU basis, and the corrected emissions for the fiscal year (considering changes in the production composition ratio and fixing the electric power emission factor) were 173.64 million tons. As a result, the reduction against the baseline year of FY 2005 was 3.30 million tons, thus exceeding the achievement target (3.00 million tons) by 300000 tons. Total emissions of the iron and steel industry in FY 2019 were 176.71 million tons.⁴⁶⁾

Eco-Processes are designed with the aim of energy-saving/CO₂ reduction efforts in iron and steel production processes, Eco-Products are designed to contribute to reductions in the product use stage by supply of high functionality steel products and Eco-Solutions contribute to reduction at the global scale through the transfer and dissemination of energy-saving technologies developed and applied practically by the Japanese steel industry. As Innovative Technology Development, the Japanese steel industry is grappling mainly with the development of an innovative steelmaking process (COURSE50: CO₂ Ultimate Reduction in Steelmaking Process for Cool Earth 50) and the development of an innovative iron-making process (Ferrocoke). Table 2 shows the targets of the Commitment to a Low Carbon Society.⁴⁶⁾

Table 2. Targets of JISF Commitment to a Low Carbon Society.⁴⁶⁾

		Phase I	Phase II
Eco-Processes		Reduction target of 5 million t-CO2 vs BAU*2	Reduction target of 9 million t-CO2 vs BAU*1
Eco-Products		Contribute to reduction of approx. 34 million t-CO2 (estimated)	Contribute to reduction of approx. 42 million t-CO2 (estimated)
Eco-Solutions		Contribute to reduction of approx. 70 million t-CO2 (estimated)	Contribute to reduction of approx. 80 million t-CO2 (estimated)
Innovative Technology Development	Development of Innovative Steelmaking Process (COURSE50)	30% reduction of CO2 emissions in production process by reduction of iron ore by hydrogen and separation/recovery of CO2 from blast furnace gas. Start of commercial operation of No. 1 unit around 2030*3 aiming at wide adoption by around 2050, based on the timing of replacement of blast furnace-related equipment.
	Development of Innovative Iron-making Process (Ferrocoke)	Innovative technology development with the aim of satisfying both energy saving in the ironmaking process and expanded use of low grade raw materials by developing ferrocoke, which demonstrates the functions of accelerating/reducing the temperature of the reduction reaction in the blast furnace, together with its operating technology.

*1  BAU: Abbreviation of “Business as Usual”; in these target values, it means the amount of CO₂ emission assuming crude steel production in these respective phases, against the baseline year of FY 2005.

*2  Of the 5 million ton-CO₂ reduction target, while continuing the commitment to a 3 million ton-CO₂ reduction based on energy saving and other self-help activities, for waste plastic, etc., only the amount equivalent to the increased quantity of collected wastes, etc. against the FY 2005 baseline is counted as an actual reduction.

*3  Preconditioned on creation of infrastructure for CO₂ storage and securing economic rationality for commercial equipment.

The COURSE50 project, which is positioned in the project “Environmentally Harmonized Steelmaking Process Technology Development” of Japan’s New Energy and Industrial Technology Development Organization (NEDO), has been underway since FY 2008. The purpose of the project is to develop technologies for reduction of the amount of CO₂ generated by blast furnaces and technologies for separation/recovery of the generated CO₂ in order to contribute to prevention of global warming. Concretely, a technology for amplifying the hydrogen content of high temperature coke oven gas (COG) generated during coke-making and reduction of iron ore by using that hydrogen as a partial substitute for coke will be developed. Innovative technologies for CO₂ separation and recovery utilizing unused waste heat in the steel works will also be developed for separation of CO₂ from blast furnace gas (BFG). The project targets a CO₂ emission reduction of approximately 30% by these technological developments. In the development of these technologies, development of element technologies was carried out in Phase I – Step 1 (FY 2008–2012), and a pilot level total demonstration test integrating the various element technologies was carried out in Phase I – Step 2 (FY 2013–2017). As results of the test, the possibility of reduced CO₂ operation of blast furnaces by utilizing hydrogen was demonstrated by using the test blast furnace, and the world’s top level CO₂ absorption solution and process were realized in blast furnace CO₂ separation and recovery.

Development of hydrogen reduction, etc. process technology (Phase II – Step 1 (FY 2018–2022)) began in FY 2018. Through Phase II – Step 2 (FY 2023–2025), this technology will finally enable a CO₂ emission reduction of approximately 30% in comparison with the total emission level of steel works at present. In the interim evaluation of Phase II – Step 1 in August 2020, this project received an extremely high evaluation for the progress of technological development of the unused waste heat recovery technology, CO₂ separation and recovery technology and high performance sintered material, and for obtaining these excellent results in a short time.⁴⁷⁾ Concretely, as a) technology for reduction of CO₂ emissions from the blast furnace, the results demonstrated both experimentally (test blast furnace) and theoretically (mathematical model) that it is possible to achieve a CO₂ reduction of approximately 10% by separate operation of tuyere injection of a room temperature hydrogen-based gas in order to expand the options for a reduction technology utilizing hydrogen in the blast furnace toward practical application. As b) technology for CO₂ separation and recovery from blast furnace gas, i) the unit energy requirement for CO₂ separation and recovery of 1.63 GJ/t-CO₂ was achieved, which is close to the theoretical limit, and ii) the composition of the waste heat recovery equipment considering durability was proposed based on a study of flue gas cleanliness.⁴⁸⁾

The final targets of Phase II – Step 1 in a) technology for reducing CO₂ emissions from the blast furnace are i) to achieve a reduction of approximately 10% in CO₂ emissions from the blast furnace and ii) to perform test operation of “Full circumference tuyere blowing” in which an actual blast furnace is partially revamped, and in b) technology for CO₂ separation and recovery from blast furnace gas, enhance the certainty of a technology for realizing separation and recovery of CO₂ from BFG at a cost of \2000/t-CO₂ and achieve separation and recovery energy of 1.6 GJ/t-CO₂, contributing to a technology for a CO₂ emission reduction of approximately 20%. However, final target a) was changed as follows: Namely, the final target for a technology for reducing CO₂ emissions from the blast furnace was changed to i) obtain an outlook of high effectiveness toward a reduction of approximately 10% in CO₂ emissions from the blast furnace and ii) conduct a test of “Full circumference tuyere blowing” with a partially revamped actual blast furnace in or after Phase II – Step 2 (FY 2023) while monitoring the condition of development of CO₂ reduction technologies, contributing the achievement of the above-mentioned target.⁴⁸⁾ It should be noted that the final target of COURSE50 remains unchanged, that is, aiming at practical application of the No. 1 unit by 2030 and diffusion by 2050, considering the timing of renewal of blast furnace-related equipment, premised on creation of the necessary infrastructure for CO₂ storage and securing economic rationality in the actual equipment.⁴⁸⁾

On the other hand, the ferrocoke project was carried out over a 3-year period beginning in FY 2006 by a joint industry-academia project of the Ministry of Economy, Trade and Industry (METI) called “Leading Research into Innovative Ironmaking Processes.” This was followed by the NEDO/METI project “Technological Development of Innovative Ironmaking Process to Enhance Resource Flexibility” over a 4-year period from FY 2009, in which the element technologies were developed. This process is an energy-saving technology in which the amount of charged coke (i.e., amount of carbon) can be reduced by using the innovative agglomerated material “ferrocoke,” which is produced by molding and carbonizing steam coke and low grade iron ore, and dramatically increases reduction efficiency, enabling reduction at a low temperature by utilizing the catalytic action of the metallic iron contained in the ferrocoke. Because unified promotion of this technology with “Development of process technologies including hydrogen reduction, etc.” was judged to be appropriate from the viewpoint of optimizing the energy saving and CO₂ reduction effects, and the ferrocoke project was added to the NEDO project “Environmentally Harmonized Steelmaking Process Technology Development” as “Development of Ferrocoke Technology.”

In FY 2017, NEDO and JFE Steel began the project “Environmentally Harmonized Steelmaking Process Technology Development/Development of Ferrocoke Technology” jointly with Kobe Steel and Nippon Steel. In 2020, JFE Steel completed a medium-scale ferrocoke production plant with a capacity of 300 t/d, which had been constructed at JFE’s West Japan Works (Fukuyama District), and began a demonstration test on October 9. The scale of this facility is 1/5 of the 1500 t/d scale assumed when the technology is commercialized, and thus is a pilot plant in the stage before commercialization. The equipment comprises crushing and drying equipment, mixing and molding equipment, and carbonizing equipment, and produces ferrocoke containing metallic iron by mixing a binder with crushed low grade coal and low grade iron ore, followed by molding and carbonizing. The effects of ferrocoke on the reducing agent ratio and operational stability of the blast furnace will be evaluated by FY 2022 by producing ferrocoke at the pilot plant and continuous long-term charging in an actual blast furnace. The ferrocoke production technology will be developed through this demonstration research with the aims of achieving a large CO₂ emission reduction and substantial energy savings when ferrocoke is used in the blast furnace and enhancing resource flexibility by making it possible to use low grade coal and iron ore, with the goal of establishing a technology which achieves approximately 10% reductions in energy consumption and CO₂ emissions in the iron-making process by around 2023.⁴⁹⁾

2.6.3. Efforts of Individual Companies

As CO₂ use and reduction technologies, Nippon Steel, the University of Toyama and four private companies jointly applied to the NEDO program “Carbon Recycling and Development of Technologies for Next-Generation Thermal Power Generation/Development of Technologies for Reduction and Effective Utilization of CO₂ Emissions/Development for Use of CO₂ in Chemical Products” and were selected as consignees for a technology development project. As development of CO₂ use technologies aimed at replacing existing chemical products derived from fossil fuels with chemical products in which CO₂ is used as a raw material, NEDO began efforts toward a technology development project related to the production of paraxylene (p-xylene) by using CO₂ as the feedstock. Among technologies which recycle carbon by producing chemical products, p-xylene has the feature of being able to reduce the use of hydrogen feedstocks and fix CO₂. Assuming hypothetically that all of the world’s current demand for p-xylene can be replaced with p-xylene produced from CO₂, the amount of CO₂ fixation would reach 160 million t/y. Also at Nippon Steel, a research group consisting of Kyoto University, the Japan Synchrotron Radiation Research Institute (JASRI), Shinshu University and Nippon Steel announced a proposal for a high efficiency separation system for CO₂ utilizing a new material (gate-type adsorbent) which is different from conventional adsorbents. The research group clarified the excellent CO₂ separation performance of the gate-type adsorbent, which is capable of suppressing heat generation when adsorbing CO₂ by an endothermic structural change by the adsorbent itself. The group proposed a high speed adsorption and separation system taking advantage of this feature of the gate-type adsorbent, and found that its CO₂ separation efficiency is extremely high in comparison with the conventional methods. This research showed that the gate-type adsorbent is useful for achieving high efficiency and energy saving in CO₂ adsorption, separation and recovery.

JFE Steel announced the establishment of a three-party research group with Taiheiyo Cement Corporation and the Research Institute of Innovative Technology for the Earth (RITE) and cooperative efforts to i) develop a technology for utilizing alkaline earth metals extracted from steel slag, waste concrete, etc. by a wet process and recovering those substances as carbonates, which are stable compounds, by reaction with CO₂ discharged from plants, etc. and ii) development of effective utilization technologies for the carbonates formed in this process.

Nippon Steel and JFE Steel, together with six other private-sector companies and the ship classification society Nippon Kaiji Kyokai (ClassNK), formed a Ship Carbon Recycling Working Group (WG) within the Japan Association of Carbon Capture and Reuse and held the first meeting. This WG was established in the Association in August 2019 to explore the possibility of realizing the concept of using methanation technology in a zero emission fuel for ships, with the aim of contributing to the formation of a sustainable society by achieving zero emissions of GHG in the process of marine transportation, which supports 99.6% of Japan’s imports and exports, through the activities of the WG.

Nippon Steel and the major mining company Rio Tinto concluded a memorandum of understanding for joint exploration, development and verification of technologies for transitioning to a steel value chain with low carbon emissions. The purposes of this partnership include the establishment of an innovative iron and steel manufacturing process that reduces carbon emissions by integrating Nippon Steel’s steel making technologies and Rio Tinto’s iron ore processing technologies by a wide-ranging study of technologies for decarbonization in the total value chain of steel from extraction of iron ore to the production of steel. The world steel industry will pursue promising new technologies for transitioning to carbon neutrality, taking into consideration the complexity and long-term nature of the transition of the steel industry to carbon neutrality.

Daido Steel Co., Ltd. participated in “Challenge Zero (Challenge Net Zero Carbon Innovation)” established by Keidanren (Japan Business Federation). “Challenge Zero” is a project that was established to support and publicize, in Japan and other countries, actions by which companies and organizations are challenging innovation toward the realization of a “decarbonized society,” which is the long-term goal of the International Framework for Climate Change Countermeasures, i.e., the Paris Agreement, and is being carried out by Keidanren in cooperation with the government of Japan. As part of this effort, Daido Steel introduced the No. 1 unit of an innovative technology called “electric arc furnace (EAF) with body rotation” at its Chita Plant (located in Tokai City, Aichi Prefecture) in 2013. In the future, in addition to the challenge of further reduction of CO₂ emissions by introducing the EAF with body rotation when other EAFs are revamped, the company will also take on the challenge of CO₂ emission reduction in the steel industry as a whole by promoting the diffusion and sale of the EAF with body rotation to steel companies in Japan and other countries, including both new construction and revamping.

In November of 2020, Daido Steel launched a new “CO₂ Reduction Project” for the purpose of establishing mid- and long-term strategic CO₂ reduction targets and action plans for 2030 and 2050, respectively, and is actively taking on the challenge of CO₂ emission reduction through concerted action by the whole company through “Development of sustainable energy saving technologies,” “Active utilization of renewable energy” and “Effective utilization of CO₂-free hydrogen.”

Sanyo Special Steel Co., Ltd. developed a new steel for use in next-generation recuperators with high temperature strength and high temperature corrosion resistance which is capable of withstanding higher waste heat recovery temperatures than conventional high chromium ferritic heat-resistant steels in order to improve the energy efficiency of recuperators, which are used in waste heat recovery equipment. By using the developed steel, fuel savings and reduced CO₂ emissions can be expected as a result of improved energy efficiency in various types of industrial furnaces. Sanyo also participated in the Keidanren (Japan Business Federation) “Challenge Zero” initiative with this Innovation Challenge.

Next, regarding slag use technologies, in the 52nd (FY 2019) Ichimura Industrial Awards, Nippon Steel received the Ichimura Prize in Industry against Global Warming for “Technology for regeneration of sea forests providing diverse ecosystem services by utilizing steel slag.” This award recognized the development and practical application of a technology that i) provides diverse ecosystem services and ii) contributes to preventing global warming by absorbing and fixing CO₂ by seaweed beds (blue carbon ecosystem) by a fertilizer (iron-supplying steel slag product) utilizing steel slag and humus. Nippon Steel began marine forest regeneration by this technology in 2004 and has now carried out projects at 38 locations throughout Japan. The area of regenerated seaweed beds at the 30 sites surveyed is approximately 3.2 ha, and a trial calculation shows that the amount of CO₂ fixed as blue carbon is a maximum of 115 t-CO₂/y.

In the past, JFE Steel developed “Creation of a hospitable environment for sea life” by constructing shallows (artificial reefs) using steel slag products in the waters adjoining Yamashita Park in a joint project with the City of Yokohama. Recently, by developing this project further, the company also concluded an “Agreement on cooperation for creating abundant seas by environmental improvement of habitats for marine life in Yokohama” with the city. In the future, JFE Steel will make further efforts to improve the marine environment based on this agreement. As part of the project, it will construct shallows and seaweed beds in the waters adjoining Yokohama’s Rinko Park and promote abundant sea creation projects.

In hydrogen-related technologies, Kobe Steel, together with eight private-sector companies which are working to construct and expand a hydrogen society, announced that they will establish and participate in a new group called the “Hydrogen Value Chain Promotion Council” to promote global cooperation in the hydrogen field and the formation of hydrogen supply chains. The purposes of the new group are to make cross-sectorial efforts to create a hydrogen value chain, accelerate the trend toward social implementation for the realization of a hydrogen society and promote the creation of a system for providing financing in cooperation with financial institutions. Through the activities of the Council, the group will contribute to CO₂ reduction and prevention of global warming by encouraging innovative efforts toward social implementation of hydrogen. The companies participating in the preparatory committee recognize the necessity of a cross-sectorial group which aims at solving the three problems of i) Creation of demand for hydrogen, ii) Cost reduction by upscaling and technical innovation and iii) Supply of financing to businesses to accelerate the creation of a hydrogen society, and have begun concrete study on the establishment of a new group.

In energy-related technologies, JFE Steel received the Energy Conservation Center, Japan (ECCJ) Chairman’s Award in the Successful Cases of Environment Conservation Category in the FY 2019 Energy Conservation Grand Prize for its outstanding achievement in “Energy conservation activities by reduction of heat loss in molten iron transportation vessels in the steel works.” Molten iron transportation vessels in the steelmaking process at a steel works are used by lining the inner surface of an external steel shell with refractories. In this project, heat loss from the vessel surface was reduced to 55 to 75% of conventional level by using a high performance heat insulating material to reduce the vessel surface temperature and suppress radiant heat transmission. The energy saving (by crude oil conversion) in case this is used in all transportation vessels in the steel works is equivalent to about 21000 kL/y (corresponding to the consumption of 24000 ordinary households).

Kobelco Moka Power Inc., a wholly-owned subsidiary of Kobe Steel, is constructing the Moka Power Plant in Moka City, Tochigi Prefecture. On March 1, 2020, it was confirmed that the performance of No. 2 Unit satisfies the specified conditions, and commercial operation was started. Since commercial operation of No. 1 Unit began in October 2019, the start of commercial operation of No. 2 Unit marked the beginning of full-scale operation of the power plant with a generating scale of 1248 kW (624 kW × 2 units). Added to the operation of the existing Kobe Power Plant No. 1 and No. 2 Units, the total power generating scale of the Kobe Steel Group will reach approximately 4000 kW in FY 2020, when commercial operation begins at the Kobe Power Plant’s No. 3 and No. 4 Units, which are currently under construction. In line with Japan’s national energy policy, this will contribute to higher efficiency in thermal power generation facilities, and will also strengthen Japan’s electric power infrastructure by providing a stable supply of electric power with excellent economics.

3. Technology Trade and Development

3.1. Technology Trade

Figure 4 shows the transition of the balance of technology trade in the steel industry up to FY 2019.⁵⁰⁾ Payments received for technology exports increased by 43% in comparison with the previous fiscal year, and payments for technology imports also increased by 42%.

Fig. 4.

Balance of technology trade of steel.⁵⁰⁾

3.2. Research Expenditures and Number of Researchers

The following three items were arranged using the data in Table 3 “Research Activities in Companies” of the statistical tables in the outline of results in Statistical Survey of Researches in Japan published by the Statistics Bureau, Ministry of Internal Affairs and Communications. The results are shown in Figs. 5, 6, 7.⁵¹⁾

Table 3. Examples of themes utilizing public funds in steel industry.

Class	Name of project	Managing organization	Start (FY)	End (FY)
Processes	Environmentally Harmonized Steelmaking Process Technology Development (STEP2) COURSE50:CO2 Ultimate Reduction in Steelmaking Process by Innovative Technology for Cool Earth 50	NEDO	2018	2022
	Innovative and Integrated High-Grade Steel Making Processes Coping with Inevitable Degradation of Iron Ore	NEDO	2019	2021
	Innovative Energy-Saving Material Processing Technology based on Thermal Science	NEDO	2019	2021
	Development of ZERO CARBON STEEL	NEDO	2020	2021
Element technologies	Element Strategy Initiative: To Form Core Research Centers - Structural Materials	MEXT	2012	2021
	Development of Technologies for Next-Generation Thermal Power Generation	NEDO	2016	2021
	Research, Development and Demonstration of CCS Technology	NEDO	2018	2022
Products	Research and Development of Innovative Structural Materials	METI	2013	2022
	Development of Technologies for Hydrogen Refueling Stations	NEDO	2018	2022
Others	Project for Super-Rapid Development Infrastructure Technologies for Super-Advanced Materials	NEDO	2016	2020
	Development of Technologies for Hydrogen Refueling Stations	NEDO	2018	2022
	Materials Science on Mille-Feuille Structure (MFS) - Development of Next-Generation Structural Materials Guided by a New Strengthen Principle -	MEXT	2018	2022

Fig. 5.

Trend of ratio of R&D expenditures to sales.⁵¹⁾ (Online version in color.)

Fig. 6.

Trend of the number of researchers per 10000 employees.⁵¹⁾

Fig. 7.

Trend of R&D expenditure per researcher (10 M yen/person).⁵¹⁾

[Ratio of Research Expenditures to Sales] In comparison with the previous fiscal year, this item was flat for all industries but increased for the steel industry. The results for FY 2019 in all industries were on the same level as in FY 2015, while those in the steel industry were on the level of FY 2016.

[Number of regular Researchers per 10000 Employees] In all industries, this index turned positive in FY 2017 but decreased in FY 2019. The steel industry showed an increasing tendency until FY 2011, when it recorded its highest value, but declined in FY 2012 and has trended on that level since then.

[Research Expenditures per Regular Researcher] In FY 2019, the results for all industries decreased slightly in comparison with the previous fiscal year, while the steel industry recorded a large increase from FY 2018. In the steel industry, this index reached its highest level in the past 20 years.

3.3. Trends in Research and Development Utilizing Public Funds

Among iron- and steel-related technical development projects, the MEXT project “Heterogeneous Structure Control: Towards Innovative Development of Metallic Structural Materials” was concluded in FY 2019. The main continuing projects included “Innovative and integrated high-grade steel making processes coping with inevitable degradation of iron ore” and “Research and Development of Innovative Energy Material Creation Processes Utilizing Heat Control Science” (both FY 2019–2021, managing organization: NEDO), “Environmentally Harmonized Steelmaking Process Technology Development – Phase II,” “Research, Development and Demonstration of CCS Technology” and “Development of Technologies for Hydrogen Refueling Stations” (all three projects, FY 2018–2022, managing organization: NEDO), “Project for Super-Rapid Development Infrastructure Technologies for Super-Advanced Materials Project” (FY 2016–2021, managing organization: NEDO) and the METI/NEDO projects “Research and Development of Innovative Structural Materials” (FY 2013–2022, managing organization: NEDO), and “Materials science on mille-feuille structure – Development of next-generation structural materials guided by a new strengthening principle” (FY 2018–2022). As a new project, “Development of ZERO CARBON STEEL” (FY 2020–2021, managing organization: NEDO) was launched in FY 2020. The main projects on iron- and steel-related research and development topics being carried out with public funds are shown in Table 3. Many of these topics are in the fields of processes, environment & energy and materials development.

4. Development of Human Resources in Technical Fields

The Iron and Steel Institute of Japan (ISIJ) conducts corporate human resources training programs (Iron and Steel Engineering Seminars, Iron and Steel Engineering Seminar special courses, Advanced Iron and Steel Seminars) and human resources training programs for students on an ongoing basis for the purpose of developing cross-industry human resources.

As human resources development programs for students, in addition to the “Student Iron and Steel Seminars” which the ISIJ has conducted for many years, in FY 2011, the ISIJ took over the Industry-Academic Partnership for Human Resources Development and conducts the “Introduction to Iron and Steel Engineering Seminar” for master’s level graduate students and the “Experiential Seminar on Advanced Iron and Steel” for undergraduates.

Due to the effects of the coronavirus, all of the above-mentioned seminars in the corporate human resources training program and human resources training programs for students were unavoidably canceled in FY 2020.

In other activities, “University Special Lectures by Top Management” by members of the top management of steel companies were held at 7 universities, and “Special Lectures on Iron and Steel Technology by senior executives of the ISIJ were held at 3 universities. A total of more than 1000 students attended these lectures. The ISIJ is also conducting a project which supports the cost of bus transportation for tours of steel works planned by universities.

5. Technology Creation Activities in the ISIJ

The ISIJ conducts activities in which it surveys technical information related to iron and steel production technologies, identifies issues for technology development and carries out activities to solve those issues, centering on the Technical Committees and Interdisciplinary Technical Committees, which are affiliated with the Technical Society (Table 4). The Working Group for Study of Steel Building Material Use, which was established under the Technical Society meetings and has carried out activities since 2015, began activities under a new management system in FY 2020 as the Interdisciplinary Technical Committee on Structural Steels and their Related Technologies for steel structures.

Table 4. Main organization in technology creation activities of The Technical Society.

Class	Content of activities
Technical Committees	• Object:	Designated fields related to iron and steel production as a whole.
	• Classification of committees:	Ironmaking, Coke, Steelmaking, Electric Arc Furnace, Special Steel, Refractories, Heavy Plate, Hot Strip, Cold Strip, Coated Steel Sheet, Large Section, Bar and Wire Rod Rolling, Steel Pipe & Tubes, Rolling Theory, Heat Economy Technology, Control Technology, Plant Engineering, Quality Control, and Analysis Technology (total of 19 Technical Committees).
	• Participants:	Steel company engineers and researchers, staff of universities, etc.
	• Purpose of activities:	Technical exchanges related to iron and steel production for the purpose of improvement of production site technology levels, identification and solution of technical of technical problems in various fields, training of young engineers, improvement of technology by industry-academic collaboration, and trend survey of overseas technologies.
	• Activities:	Committee meetings (1–2 times/year), meetings of Interdisciplinary Technical Committees handling designated topics, lecture meetings for training of young personnel and various other types of plans, etc.
Interdisciplinary Technical Committees	• Object:	Interdisciplinary or inter-industry technical subjects spanning various fields of the iron and steel production process.
	• Classification of committees:	Interdisciplinary Technical Committees on “Control of inhomogeneity to enhance mechanical properties of modern structural steels,” “Desirable Steel Materials for Automobiles (7th Period),” “Materials for Pressure Vessels” and “Structural steels and their related technologies for steel structures” (total of 4 Interdisciplinary Technical Committees).
	• Content of activities:	Technical study for technological directions and problem-solving, surveys and other types of research, information exchanges with other associations, etc.

In addition, the Investigation Committee for Global Warming Mitigation Technologies for the Steel Industry (abbreviation: CGS) was established in April of 2018 and has been conducting a wide-ranging study of technology contributing to reduction of CO₂ emissions from the steel industry through information exchanges with related scientific societies and others.

5.1. Technical Committees

Technical Committees, which promote activities related to iron and steel production in their designated fields, hold regular Committee Meetings where key issues at the present time are energetically discussed as common and important topics (Table 4). A total of 35 Committee Meetings had been scheduled for FY 2020, comprising 17 Spring Meetings and 18 Fall Meetings. However, due to the effects of the coronavirus, all of the Spring Meetings were either cancelled or postponed, and the Fall Meetings were limited to only 6 events (1 held in-person, and the remaining 5 held as online meetings).

As a result, the total number of participants was 405, including those participating via the internet, and no university or other researchers participated.

Various types of training programs for young engineers and activities of the Technical Committees on respective topics and international exchanges activities were all unavoidably cancelled or postponed, and some activities were carried out online or in-person with a limited number of participants.

5.2. Interdisciplinary Technical Committees

Interdisciplinary Technical Committees (Table 4) study interdisciplinary and inter-industry technical issues. In addition to the newly-launched Interdisciplinary Technical Committee on Structural Steels and their Related Technologies, four committees were active during FY 2020.

In all of these committees, virtually no committee or working group (WG) activities were possible, particularly in the first half of FY 2020, due to the effects of the coronavirus. However, activities such as meetings and research presentation resumed online in the second half.

The Interdisciplinary Technical Committee “Control of inhomogeneity to enhance mechanical properties of modern structural steels” is continuing its activities on a theme which it began in FY 2019.

The Interdisciplinary Technical Committee “Desirable steel materials for automobiles” held repeated discussions with the Society of Automotive Engineers of Japan (JSAE) on the proper form of a new cooperative relationship with auto makers, carried out activities related to the creation of a platform for proposing topics and exchanges centering on young engineers, and conducted a study with the aim of beginning joint research activities, and will carry out joint research on new topics from FY 2021.

A joint symposium of the JSAE, the Japan Institute of Metals and Materials and the ISIJ that had been scheduled for FY 2020 was postponed.

In the Interdisciplinary Technical Committee “Materials for Pressure Vessels,” the “Working Group on Study of Standards for Steel Materials” and the “Working Group on Advanced Heat-Resistant Steels” conducted their respective activities, and the latter group prepared a report summarizing its activities over the 3-year period to date. The “Working Group on Hydrogen Embrittlement,” which had been inactive from some time, was dissolved as of the end of FY 2020.

The new Interdisciplinary Technical Committee on Structural Steels and their Related Technologies was scheduled to begin its activities from FY 2020. Subsequently, however, the content of activities under the new management system was reviewed. As a result of repeated study, the technical issues will remain as originally planned, but various changes were made, including a review of the targets of WG activities and study of legal and regulatory issues.

5.3. Research Grants and Research Groups

The system related to research grants of the ISIJ is shown in Table 5. In “Grants for Promotion of Iron and Steel Research,” 35 new projects (including 6 by young researchers) were selected to begin receiving grants in FY 2020. Together with 30 projects that began in FY 2019, a total of 65 projects were carried out based on grant topics in FY 2020.

Table 5. Research grant system of ISIJ.

Class	Content of activities
Grants for Promotion of Iron and Steel Research	• Purpose:	Activation of iron and steel research, support for basic and infrastructural research related to iron and steel, training of young researchers
	• Application process:	Selected each year based on public invitation; grant period is 2 years.
	• Features:	Object is individual researchers, establishes a framework for young researchers.
	• Number of projects:	65 (number of aid recipients in FY 2020).
Research Groups	• Purpose:	Activation of iron and steel research, creation of foundations for technical innovation, creation of human research network by industry-academic collaboration.
	• Application process:	Selected each year based on proposals, public invitation; in principle, period of activity is 3 years.
	• Features:	Establishes “Research Group I,” which treats “seed”-led basic/advanced themes from universities and other research institutions, and “Research Group II,” which treats “need”-led applied/industrial themes from iron and steel companies. Participation of industry and academia.
	• Number of projects:	20 (number in progress at the end of December 2020).
ISIJ Research Projects	• Purpose:	Solution of technical problems of iron and steel industry, research on areas which are both important and basic, development to National Projects, etc.
	• Application process:	Selected by public invitation; in principle, period of activity is 3 years.
	• Features:	Research and development projects of key technologies contribute to industrial applications based on needs of steel industries. Participation of industry and academia.
	• Number of projects:	2 (number in progress as of the end of December, FY 2020)

In FY 2020, 20 Research Groups were active, of which 8 concluded their activities during the year. Five projects in Research Group I (“Seeds type”) began new activities in FY 2020, and four projects in Research Group I will be started from FY 2021.

In ISIJ Research Projects, one new project began activities in FY 2020, and two were selected to begin activities in FY 2021.

It was difficult to hold in-person meetings of groups in Research Group I, Research Group II and ISIJ Research Projects during FY 2020 due to the effects of the coronavirus. Although activities were carried out by new methods, for example, by holding research presentations online, extensions of the activity periods of some Research Groups and ISIJ Research Projects are unavoidably being considered.

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