Production and Technology of Iron and Steel in Japan during 2023

1. Overview of the Japanese Iron and Steel Industry

This chapter reviews the conditions in the global economy, the Japanese economy, the world iron and steel industry and the Japanese iron and steel industry during 2023. In the global economy, the pace of recovery remained slow due to the triple handicap of the crisis in Ukraine, the slowdown in the Chinese economy and the deterioration of the situation in the Middle East. In the world as a whole, the real growth rate against the previous year declined from 3.5% in 2022 to 3.1% in 2023 and is also expected to remain at 3.1% in 2024.¹⁾ By region, the estimated real growth rate in 2023 was +2.5% in the United States, +0.5% in the EU, +5.2% in China, +6.7% in India and +1.9% in Japan. Because the Chinese economy is experiencing a financial crisis due to the collapse of the real estate bubble coupled with a high youth unemployment rate exceeding 20%²⁾ and tensions in the global military situation show no signs of easing, it is difficult to say that the outlook for the global economy is bright. Moreover, the struggle for hegemony between the United States and China, which extends as far as infrastructure investment, also shows no signs of ending.³⁾

The Japanese economy has continued to follow an essentially horizontal course for about 30 years, since the second half of the 1990s (based on the transition of nominal GDP (own currency)).⁴⁾ While Japan’s national burden rate has risen to slightly under 50%,⁵⁾ real wages have also declined for 20 consecutive months,⁶⁾ and Japan now has the highest relative poverty rate among the G7 countries (Group of 7 advanced countries).⁷⁾ Although the government has worked out “comprehensive measures for completely breaking away from deflation,”⁸⁾ private-sector measures, including wage increases and promotion of investment, are also needed, and the effect of demand creation must be closely monitored. Deflation, that is a prolonged period of inadequate demand, appears in the form of a decrease in supply capacity. The introduction of foreign labor is one possible response, but social confusion due to deterioration of public security, etc., as seen in the European countries to date, is a concern. Thus, in order to completely overcome deflation, it is desirable to transition to strong growth by increasing demand creation, which is an effective approach in Japanese’s domestic-demand based economy.

In 2023, world crude steel production was flat from the previous year, at approximately 1.89 billion tons (0.0% change from the 2022). Looking at crude steel production by country, China ranked No. 1, followed by India (No. 2) and Japan (No. 3).⁹⁾ This order has remained unchanged since 2018. China’s crude steel production peaked in 2020, then decreased for 2 consecutive years and remained flat against the previous year in 2023. Global overcapacity in the iron and steel industry exceeds 600 million tons,¹⁰⁾ and in spite of continuing attempts to expand the Global Forum on Steel Excess Capacity (GFSEC),¹¹⁾ a multinational platform for consultation on this problem, no outlook for China and India resuming their re-participation has been reported. In this situation, large changes in concerns about softening market conditions cannot be expected.

In 2023, the crude steel production of the Japanese iron and steel industry was 87 million tons, for a decline of 2.5% from 2022.¹²⁾ In 2020, crude steel production decreased sharply, to 83.19 million tons, due to the novel coronavirus crisis (COVID pandemic). This drop in production was even larger than that after the global financial crisis in 2008. With the recovery of the Japanese economy, production increased to 96.33 million tons in 2021, just short the 100 million ton/year level. Subsequently, however, production decreased for 2 consecutive years, beginning in 2022.^12,13,14,15) In FY 2024, domestic demand is expected to trend in the flat range, while external demand will be limited to the level of the previous year, and crude steel production is also expected to remain flat.¹⁶⁾

Crude steel production of the Japanese iron and steel industry in FY2023 for domestic demand for steel products recovered centering on the automotive sector, where constraints due to a semiconductor supply shortage, etc. were resolved and increased external demand is forecast,¹⁶⁾ but because demand remained stagnant in other steel-consuming sectors, total demand is expected to fall below the level of 2022,¹⁶⁾ Nevertheless, in spite of decreased production and continuing high raw material prices, the financial performance of Japan’s integrated steel makers showed a high level of profitability for the third consecutive year owing to progress in structural reforms and steel product price increases. Due to the continuing outlook for little or no long-term growth in domestic demand for steel products, steel makers continued to implement structural reforms of domestic facilities, including idling blast furnaces, consolidation of production bases, etc. in 2023. On the other hand, steel makers also committed even more resources to challenging research and development with the aim of realizing carbon neutrality and began sales of low CO₂ steel products. Utilization of data science has already taken firm root at production sites, and further development is underway.

The following sections presents an overview of the environment surrounding the iron and steel industry in Japan during 2023 from the perspectives of trends in raw materials for iron and steel, trends in steel consuming industries, the condition of crude steel production in Japan and the world.

1.1. Trends in Raw Materials for Iron and Steel

The total iron ore production of the 3 majors, Rio Tinto, BHP and Vale, was 865.39 million tons in 2023, representing an increase of 2.2% from 2022.^17,18,19) Figure 1 shows the long-term transition of the average annual import prices of iron ore and metallurgical coal. The price of iron ore decreased, continuing from 2022, while the price of metallurgical coal also began to decrease after rising sharply in 2022.^20,21) Although the spot price of iron ore (Fe 62%, CFR China) generally trended at US＄110/ton to US＄130/ton, the price showed an increasing trend in the second half of the year against the background of firm demand in China and India. The spot price of metallurgical coal had risen sharply in 2022 but showed a decreasing tendency in 2023 due to the sluggish tendency in iron and steel demand worldwide. However, India’s metallurgical coal imports increased and continued to trend in the high range.^23,24) The transition of the average annual price of steel scrap (H2) in the Tokyo area is shown in Fig. 2.²⁴⁾ There was little variation in the price of scrap, and although the price declined once during the summer, steel scrap displayed a stable trend at around ￥38000/ton in the second half of 2023.

Fig. 1. Transition of world crude steel production and unit price of imported iron ore & metallurgical coal (calendar year).^20,21)

Fig. 2. Transition of annual average of steel scrap (H2) price in Tokyo area (calender year).²⁴⁾ (Online version in color.)

1.2. Trends in Steel-consuming Industries

According to the Quarterly Report of Iron and Steel Demand²⁵⁾ of the Japan Iron and Steel Federation (JISF) and materials provided at meetings to explain on iron and steel demand sponsored by the JISF, the trends in iron and steel-consuming industries during FY 2023 were as outlined below. For details, please refer to the original sources or the websites of the JISF and the respective industrial associations.

Domestic iron and steel demand in FY 2022 is expected to decrease in comparison with FY 2022. Although the semiconductor shortage that affected the automobile industry has now been resolved, industry as a whole continues to be sluggish due to labor shortages, higher material costs, etc. Total domestic steel consumption is forecast at 52.71 million tons, or a decrease of 1.1% from FY 2022. Following outlines the trends in iron and steel-consuming industries.

Steel consumption in the civil engineering and construction fields as a whole is expected to decrease from the FY 2022. In public civil works, the government’s program of “5-year acceleration measures for disaster prevention, disaster mitigation, and national resilience” is being implemented, but construction cost overruns, in which the actual cost exceeds the bid, have occurred in some cases due to labor shortages, increase in personnel costs/material costs and the like, and scattered examples of construction delays and other problems can also be seen. In the private-sector civil engineering market, companies are taking a cautious stance toward investment in construction projects, and supply-side constraints such as labor shortages, etc. are also a concern. Regarding the number of new housing starts, the outlook is for a decrease in residential demand as a whole compared with the FY 2022, as construction of owner-occupied houses is continuing to decline due to a sharp rise in construction costs, while construction of subdivision-type houses and condominiums also remains sluggish due to a rise in the sales price of condominiums in response to sharply higher prices for construction materials, etc. In nonresidential floor space, despite the firm tone of large projects centering on the Tokyo Metropolitan area, the outlook is for continuing sluggishness, particularly in small and medium-scale projects, due to a sharp rise in material prices and higher construction costs attributable to labor shortages, etc.

Consumption of steel products in the shipbuilding sector is also expected to decrease from FY 2022. The demand environment is stable, as seen in the firm tone in orders received for new ship construction and a backlog of more than two and a half years in work in hand. However, looking at the supply side, chronic labor shortages are continuing, suggesting that the difficulty of increasing the pace of ship construction is a factor in decreasing steel consumption.

On the other hand, steel consumption in the automotive sector is forecast to increase from FY 2022. Domestic production of complete automobiles is expected to increase from FY 2022, as constraints on semiconductor supplies have improved and all auto makers are increasing production to eliminate back orders. Where production of KD (knock-down) sets is concerned, a decrease in the share of Japanese-affiliated auto makers in China has had a serious impact, but production is expected to increase in comparison with FY 2022 with firm demand in North America and Europe as a driving force.

In the construction machinery and industrial machinery sectors, consumption of steel products is expected to decrease from FY 2022. In construction machinery, even though demand in Japan shows a strong tone driven by external demand in North America, there is a feeling that a slowdown may occur from the second half of the year in reaction to the current high level of production. In the fields of metal processing equipment and machine tools, in addition to slow growth in demand from manufacturers of semiconductor production equipment, weakness can also be seen in both domestic and external demand, for example, in the slowdown of shipments to China, which is a main export destination. As a result, a decline in steel demand from FY 2022 is also foreseen in these fields. In other types of machinery, in spite of investment in labor-saving machinery in response to labor shortages and demand for replacement investment, etc., a decrease is expected in comparison with FY 2022, when sales were particularly high owing to pent-up demand after the COVID crisis.

Regarding electrical machinery, a slight decrease in steel demand for heavy electrical machinery is foreseen in comparison with FY 2022, as this sector was affected by the global economic slowdown, and a decrease in household electrical appliances from FY 2022 is also expected due to a shift to consumption of services accompanying increased opportunities enjoy activities outside the home, together with an orientation toward thriftiness among consumers in response to higher commodity prices (inflation).

1.3. Crude Steel Production in Japan

As described in detail in the previous section, production activity in the automotive sector recovered in 2023 after constraints such as the semiconductor shortage were resolved, but on the other hand, demand was sluggish in other iron and steel-consuming fields, and as a result, crude steel production was limited to 87 million tons, a decrease of 2.5% from the 2022.¹²⁾ By furnace type, converter steel production accounted for 64.17 million tons, down 1.9% from the 2022, while electric arc furnace steel production also decreased by 4.2% against 2022, to 22.83 million tons. The ratio of electric arc furnace steel was 26.2%, for a 0.5% decrease from 2022 (Fig. 3). By steel type, production of plain carbon steel was 67.53 million tons, down 1.9% from 2022, and production of special steel was 19.47 million tons, for a 4.7% decrease from 2022 (Fig. 4).

Fig. 3. Transition of crude steel production in Japan (calendar year).²⁶⁾

Fig. 4. Crude steel production for ordinary steel and special steel (calender year).^26,27)

Looking ahead to 2024, demand for steel products is also expected to decrease in the construction sector, as the effects of the decrease in new housing starts and labor shortages will continue, against the backdrop of high housing prices. Decreased demand for steel products is also foreseen in manufacturing industries, as the effect of labor shortages will be on the same level as in 2022 in the shipbuilding sector, and the market will also be weak in the machinery sector. On the other hand, an increase is forecast in the automotive sector, corresponding to the expected elimination of remaining orders from FY 2022. In total, domestic demand for iron and steel products is expected to trend in the flat range from 2023. Moreover, external demand for iron and steel is also expected to remain the same level as the previous year. Although resource and fuel prices are expected to remain high due to the Russia’s aggression against Ukraine and rising tensions in the Middle East, and trends in the Chinese economy and monetary policies in Japan and other countries are potential risks, Japanese crude steel production in 2024 is forecast to remain flat in comparison with 2023.¹⁶⁾

1.4. World Crude Steel Production

Table 1 shows the transition of crude steel production in the world’s 10 top steel-producing countries and in the world as a whole. Total world crude steel production in 2023 was 1888.2 million tons, which was substantially flat from the 1887.6 million tons of 2022. Looking at the crude steel production of the main countries, production in the No. 2 country, India, reached 140.20 million tons, for an increase of 11.8% from 2022, but was essentially flat in No. 1 China, at 1019.1 million tons, and decreased by 2.5% from 2022 in No. 3 Japan falling to 87 million tons. Among other countries, Germany, Turkey and Brazil also recorded decreases in comparison with 2022.²⁸⁾

Table 1. Top 10 crude steel production countries (Source: WSA: Million tons).²⁸⁾

Order	1995	2000	2005	2010	2015	2019	2020	2021	2022	2023	Change Rate (%) 2023/22
1	Japan	China	China	China	China	China	China	China	China	China	+0.1
	101.6	128.5	355.8	638.7	803.8	1001.3	1064.7	1034.7	1018.0	1019.1
2	China	Japan	Japan	Japan	Japan	India	India	India	India	India	+11.8
	95.4	106.4	112.5	109.6	105.1	111.4	100.3	118.2	125.4	140.2
3	USA	USA	USA	USA	India	Japan	Japan	Japan	Japan	Japan	▲2.5
	95.2	101.8	94.9	80.5	89.0	99.3	83.2	96.3	89.2	87.0
4	Russia	Russia	Russia	India	USA	USA	USA	USA	USA	USA	+0.2
	51.6	59.1	66.1	69.0	78.8	87.8	72.7	85.8	80.5	80.7
5	Germany	Germany	South Korea	Russia	Russia	Russia	Russia(e)	Russia(e)	Russia(e)	Russia(e)	+5.6
	42.1	46.4	47.8	66.9	68.7	71.6	71.6	77.0	71.7	75.8
6	South Korea	South Korea	India	South Korea	South Korea	South Korea	South Korea	South Korea	South Korea	South Korea	+1.3
	36.8	43.1	45.8	58.9	69.7	71.4	67.1	70.4	65.8	66.7
7	Italy	Ukraine	Germany	Germany	Germany	Germany	Turkey	Turkey	Germany	Germany	▲3.9
	27.8	31.8	4.5	43.8	42.7	39.6	35.8	40.4	36.9	35.4
8	Brazil	Brazil	Ukraine	Ukraine	Brazil	Turkey	Germany	Germany	Turkey	Turkey	▲4.0
	25.1	27.9	38.6	33.4	33.3	33.7	35.7	40.2	35.1	33.7
9	Ukraine	India	Brazil	Brazil	Turkey	Brazil	Brazil	Brazil	Brazil	Brazil	▲6.5
	22.3	26.9	31.6	32.9	31.5	32.6	31.0	36.1	34.1	31.9
10	India	Italy	Italy	Turkey	Ukraine	Iran (e)	Iran (e)	Iran (e)	Iran	Iran	+1.8
	22.0	26.8	29.4	29.1	23.0	25.6	29.0	28.3	30.6	31.1
World Total	752.3	848.9	1148.0	1433.4	1622.9	1880.1	1880.4	1960.4	1887.6	1888.2	0.0

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

In explaining China’s almost flat crude steel production, although the Chinese economy recovered after the country’s “zero-COVID” policy was lifted, it is thought that the recovery lacked strength due to a variety of factors, including a continuing recession in real estate originating from the introduction in August 2020 of a Chinese version of restrictions on the total volume of real estate lending (modeled on Japan’s soryo-kisei system), and a lack of “revenge spending” after the end of the zero-COVID policy owing to the high unemployment rate of young persons, etc. On the other hand, after November 2023 some favorable changes also began to appear, as the government began to apply strong leverage to private companies, etc. If these moves are successful, they are expected to restore a feeling of confidence in private developers, at least to some extent, and should also contribute to stabilization of the real estate market. As a result, the market for steel construction materials is expected to bottom out, and an increase in iron and steel demand in China is expected in 2024.^29,30)

In India, crude steel production has exceeded 100 million tons for 7 consecutive years since 2017. The country’s rapid progress has been achieved against the background of full normalization of economic and social activities following the COVID pandemic. In addition to maintaining consumption-driven high growth, the business climate has also shown a favorable trend as a result of India holding the Cricket World Cup since 2011 and the effects of moderating inflation and a decision to leave the policy interest rate unchanged based thereon. Because inflationary pressures have abated, particularly in the case of energy and food, there is a high possibility that business conditions will also show a firm trend in 2024. Based on this, a firm trend in iron and steel demand is also expected.³¹⁾

2. Technology and Equipment

In response to decreased domestic demand for steel products, reorganization of steel works is underway, as Nippon Steel Corporation closed the Kure Area of its Setouchi Works in September of 2023, and JFE Steel Corporation also shut down No. 1 blast furnace at East Japan Works (Keihin) in the same month. On the other hand, in response to the heightened steel demand in India accompanying infrastructure improvement and the growth of the automobile industry, Japanese companies have made a series of investments in India as a growth market.³²⁾ Moreover, in December, Nippon Steel also announced plans to acquire United States Steel Corporation (US Steel). Deeper cooperation between the Japanese and US steel industries is expected, particularly in initiatives to achieve carbon neutrality.

The keyword for the technology that attracted the strongest interest was also carbon neutrality (CN) in 2023. Japan’s blast furnace steel makers have announced that they will meet the challenge of realizing CN by 2050, with interim targets for 2030, and have begun ambitious, challenging development projects to achieve those goals. To support decarbonization of the iron and steel industry, Japan’s New Energy and Industrial Technology Development Organization (NEDO) more than doubled its initial budget for the “Green Innovation Fund Project/Hydrogen Utilization in Iron and Steelmaking Process (GREINS)” from the initial ￥193.5 billion to ￥449.9 billion. Large progress was also achieved in technologies for Super COURSE50, which is a part of NEDO-backed project. Because the combination of direct-reduced iron and the electric arc furnace is one route to achieving CN, there is also heightened interest in electric arc furnace technology. Zero-emission hydrogen and CCUS (Carbon dioxide Capture, Utilization and Storage) are necessary for CN, and Japan’s integrated steel makers have begun independent project to develop these technologies, even though they are considered external conditions from the viewpoint of the steel industry. Where data science is concerned, development and practical application of algorithms for problem-solving at various worksites are underway, and methods for solving work-related problems by using data science tools are continuing to take root. In product development, steady progress is being made in the development of materials with an orientation toward high strength and long life for weight reduction, reduction of CO₂ emissions, etc., as well as the development of materials that envision the advent of a hydrogen society. The following sections introduce the main technological trends by field of iron and steel technology, together with technical topics of the Sustaining Members of the ISIJ.

2.1. Ironmaking and Steelmaking

In 2023, pig iron production was 63.04 million tons, down 1.7% from 2022, and crude steel production was 87.00 million tons, for a decrease of 2.5% from 2022.¹²⁾ As part of a review of its production system, Nippon Steel shut down all the equipment in the Kure Area of Setouchi Works in September 2023, and JFE Steel also idled the upstream equipment at East Japan Works (Keihin) in September of 2023. As of the end of 2023, 20 blast furnaces were in operation in Japan, among which 13 had capacities of 5000 m³ or larger. In renovation and introduction of new equipment, as part of the changeover from the blast furnace process to the electric arc furnace process, Nippon Steel announced the start of a full-scale study of Kyushu Works Yawata Area and Setouchi Work Hirohata Area as candidate sites. During the year, JFE Steel completed the relining of No. 6 blast furnace at East Japan Works (Chiba), and to reduce CO₂ emissions by expanding the use of scrap, the company announced that it will introduce a new arc-type electric furnace in No. 4 steelmaking shop at East Japan Works (Chiba). Although described in detail in section 2.3, JFE Steel announced that it had achieved a fuel consumption reduction effect of approximately 5% and a CO₂ emission reduction effect of 6600 t/y at the coke ovens at West Japan Works (Fukuyama) by applying a “Combustion optimization technology for individual spaces in coke ovens” based on equipment design utilizing digital twin technology. In response to increased demand for high grade steel, Daido Steel Co., Ltd. announced the addition of 1 vacuum arc remelting furnace (VAR) at its Shibukawa Plant, with operation scheduled to begin in September of 2024. The company will also add 2 units of VAR equipment at its Chita No. 2 Plant, where startup is planned by the end of fiscal year 2024 (end of March 2025).

2.2. Steel Products

2.2.1. Sheets

In the field of automotive steel sheets, expanded application of high tensile strength steel sheets (HTSS) is being promoted to meet the continuing need for high strength/downgauging of steel sheets to reduce auto body weight, with the aim of improving fuel economy and reducing CO₂ emissions. In particular, because forming of ultra-high tensile strength steel sheets (UHTSS) of 980 MPa grade and higher is difficult due to the tradeoff relationship between strength and formability, makers promoted research and development for application of UHTSS.

Nippon Steel developed a lightweight A pillar using 1470 MPa class cold-rolled HTSS in a joint project with Suzuki Motor Corporation and Bellsonica Corporation, a maker of automotive and motorcycle components. By using 1470 MPa class cold-rolled HTSS, in which both high strength and formability are satisfied by intricate composition design and microstructure control, it was possible to achieve integral forming of a window frame part that had been produced conventionally by forming and welding 5 separate components. Countermeasures were also taken for the technical problems of delayed fracture and spot weldability. Weight reduction, CO₂ reduction and a large cost reduction were achieved by using the new 1470 MPa class cold-rolled HTSS.

JFE Steel received the Minister of Economy, Trade and Industry (METI) Award in the FY 2023 National Invention Awards for “Invention of ultra-high tensile strength thin steel sheet that improves fuel efficiency and collision safety of automobiles.” By utilizing an ultra-rapid cooling technology based on its proprietary WQ (water-quenching) type continuous annealing process, JFE succeeded in enhancing the uniformity of the metallographic structure to its ultimate limit while reducing alloying elements that have an adverse effect on delayed fracture. This increased delayed fracture resistance to a level that enables practical application, and makes it possible to produce UHTSS parts by the cold press process. While this is an ultra-high strength steel sheet with tensile strength of 1320 MPa or higher, the invention is related to automotive cold-rolled steel sheets with dramatically improved delayed fracture resistance. The new product is being applied as 1320/1470 MPa class ultra-high strength cold-rolled steel sheets for cold forming use.

2.2.2. Plates

In the ship sector, JFE Steel received the FY 2023 Award for Science and Technology from the Minister of Education, Culture, Sports, Science and Technology (MEXT) in science and technology (Development Category) for “Extra-thick, high-strength steel plate for materialization of large container ships.” Because container ships are loaded with a large number of containers, they are designed with wide openings at the top of the deck. Since the hull is exposed to large wave loads during a voyage, it is necessary to use extra-thick, high-strength steel materials in the top of the deck and the hull side, which is called the hatch side coaming. In recent years, ultra-large container ships with container loading capacities of more than 20000 units have been registered, and in response, the thickness of the steel plates used in those parts was expanded from 50 mm to 100 mm, and high strength of up to yield strength of 460 MPa class is now required. However, as the thickness of steel plates increases, the crack arrest performance necessary to arrest brittle crack propagation also become higher. Therefore, JFE Steel established a proprietary technology which increases the crystal orientation ratio in the direction that resists crack propagation in the center-of-thickness of the new plate by utilizing TMCP (Thermo Mechanical Control Process) technology, making it possible to secure high crack arrest performance even in extra-heavy, high-strength steel plates with a thickness of 100 mm.

In the bridge field, Nippon Steel received the Ichimura Prize in Industry (Distinguished Achievement) in the 55th (FY 2022) Ichimura Prizes for “Development of CORSPACE^® corrosion-resistant steel for extension of the repainting cycle, contributing to prolongation of the life of bridges and port facilities.” Although bridges are a critical part of social infrastructure, many bridges in Japan were constructed during the country’s period of high economic growth (1960s–1970s), and are suffering progressive deterioration with age. Therefore, the construction of minimum maintenance and life prolongation technologies for bridges has become an important issue for reducing the repair and maintenance costs of aging bridges and responding to a decreasing working-age population, accompanying Japan’s low birth rate and rapidly aging population. Many bridges are painted as a corrosion-prevention measure, but corrosion of the steel material concentrates and progresses at defects in the paint coating such as damaged parts of the paint and sharp-angled parts of the bridge members. Therefore, Nippon Steel developed a new corrosion-resistant steel with a corrosion suppression function at paint defects. As the result of a diligent search for elements that delay the reaction whereby iron (Fe) is eluted in acidic solutions, a trace amount of tin (Sn) was added to the steel material, and it was found that the dissolution reaction of Fe is suppressed by eluted Sn ions. This led to the development of CORSPACE^®, a corrosion-resistant steel for extension of the repainting cycle which reduces the area of paint peeling at paint defects to half the level of conventional steels.

JFE Steel developed a thin version of its fatigue-resistant “AFD^®” (Anti-Fatigue Damage) steel with improved endurance against fatigue damage. While keeping the same mechanical properties as the conventional thick material, JFE developed a steel plate with a minimum thickness of 9 mm which demonstrates enhanced durability against fatigue damage in comparison with general steel. In particular, because many thin-gauge members are used in bridges, and fatigue cracks may occur as a result of the traffic load of automobiles, etc., there was a risk that cracks might grow during the period before inspection and repair. The fatigue crack propagation rate of AFD steel is less than half of the upper limit value of general steels, achieving long life in members, at approximately 2 times the product life of general steels. JFE Steel has also developed the new welding method “FLExB^® welding,” which can enhance endurance against fatigue damage by reducing the stress level at parts that becomes the origin of fatigue cracks in welds.

On the other hand, Kobe Steel, Ltd. developed the fatigue-resistant steel plate “EX-Facter^®” which improves fatigue crack initiation life by adding a function that suppresses the initiation of fatigue cracks to heavy plates. Focusing on the damage that occurs before fatigue crack initiation in heavy steel plates, it was possible to suppress crack initiation by a manufacturing method utilizing the optimum composition design and TMCP technology. In comparison with conventional steel, fatigue strength at 10⁷ cycles was improved by 36%. In shipbuilding, this enables material thickness reduction and rationalization of ship design while securing safety against fatigue fracture. In steel bridges, the new plate achieved an improvement of 2 times in fatigue crack initiation life in a simulated fatigue test when it was applied to the deck plate under the road surface.

2.2.3. Pipes, Shapes and Transportation/Industrial Machinery Products

In the field of steel pipes, development of pipes for high pressure hydrogen and liquid hydrogen is underway in anticipation of the coming hydrogen society. In Japan, many of the hydrogen stations currently in operation fill fuel cell vehicles, etc. after compressing gaseous hydrogen delivered by trailers or other means. However, hydrogen embrittlement was an issue because the pipes used to carry hydrogen in this process are exposed to high pressure hydrogen. Nippon Steel has already developed a seamless steel pipe with excellent hydrogen embrittlement resistance under high pressure hydrogen environments. Although this product has been adopted by many commercial hydrogen stations, new materials for use with liquefied hydrogen that also display low temperature toughness at cryogenic temperatures are currently being developed, aiming at introduction in commercial markets. On the other hand, use of pipelines, in the same manner as in the existing natural gas supply chain, is being considered for mass transportation of hydrogen from hydrogen-receiving terminals to hydrogen-consuming areas. In particular in overseas, in view of the problem of hydrogen embrittlement, establishment of material property evaluation methods for safety standards and investigation of product quality is being promoted. In cooperative development of hydrogen-related technologies by the Ocean Innovation Consortium, which includes the Nippon Foundation and petroleum majors, research and development on property evaluation techniques for linepipes for high pressure hydrogen transportation using electric resistance welded (ERW) steel pipes produced by JFE Steel was adopted. ExxonMobil, in cooperation with TotalEnergies, aims for establishing evaluation standards and methods for steel pipe materials for use in transportation of high pressure hydrogen, and working toward practical application of the world’s first pipeline for transportation of high pressure hydrogen.

Moves for “visualization” of the magnitude of the environmental impacts of industrial materials such as iron and steel on a product-by-product base are spreading. Manufacturers that obtain certification for the amount of CO₂ generated in the lifecycle of products, from procurement of raw materials through production and recycling, can display an environmental label called an “Ecoleaf Declaration” for the products concerned. “Ecoleaf” is an original Japanese environmental label which is displayed, guaranteeing the reliability of the environmental information for each product, and conforms to the international standard called “Environmental Product Declaration (EPD),” under which a specialized organization certifies quantitative environmental information for individual products.³³⁾ Although Nippon Steel previously acquired “Ecoleaf Declaration” certification for its Oil Country Tubular Goods (OCTG) and linepipe (carbon steel, low alloy steel) in May of 2021, the company also acquired additional certification for stainless steel in November 2023, enabling objective evaluation of the lifecycle environmental loads of all grades of OCTG and linepipes produced by Nippon Steel. Nippon Steel has also obtained “Ecoleaf Declaration” certification for general steel pipes (piping applications, structural pipes) for the domestic market, which are used in a wide variety of fields, and for steel sheet pile products, which are applied in the construction field, for example, in river and port construction, road construction, retaining walls, temporary cofferdam construction and the like. JFE Steel has also obtained the same certification for welded steel pipes, forge welded steel pipes, seamless steel pipes and seamless square steel pipes for building construction.

Nippon Steel and the Central Japan Railway Company (JR-Central) jointly developed a “New brake pad for shinkansen,” which won the Ichimura Prize in Industry (Distinguished Achievement) in FY 2022 and also received the Minister of Education, Culture, Sports, Science and Technology (MEXT) Prize for Science and Technology: Development Category in FY 2022. As a problem of conventional brake pads, when the brakes are applied suddenly during high speed operation, partial contact occurs because the friction material cannot follow the thermal deformation of the brake disks, and this causes a decrease in braking force, etc. To solve this problem, Nippon Steel developed and applied a new type of brake pad in which the friction material follows the thermal deformation of the disk and maintains uniform contact with the disk, thereby shortening the braking distance.

2.2.4. Electrical Machinery

Daido Steel Co., Ltd. added a new product that boasts an excellent shielding property at low frequencies of approximately 100 kHz and less to its Permalloy Foil STARPAS^® line, which has a suppression effect for the EMC noise (mainly magnetic noise) generated as a result of the use of high frequencies in telecommunication technology and IoT and the electrification of automobiles, and began sales in January 2023. The development of a shield material for the low frequency region using Permalloy, which has excellent formability, including bending and punching forming and is easily attached to machinery, realized the optimum shield design for low frequencies, contributing to weight reduction and thinner shapes in devices used in electric vehicles (EVs) and automated driving technologies, etc. Daido also developed a stainless steel-based powder LTX™420 for 3D printers use, which is suitable for molds used in plastic injection molding, and began sales in August 2023. In LTX™420, the SUS420J2-based mold steel material used in plastic molds, in which corrosion resistance and wear resistance are required, was adjusted to an alloy composition suitable for molding with SLM (Selective Laser Melting) type 3D printers, greatly reducing the strain generated during molding. This made it possible to mold large objects while also preventing cracks during continuous molding, even without the special treatment that had been necessary in the molding process.

2.3. Instrumentation/Control/Systems

The present age is often called the 4th Industrial Revolution, in which progress in ICT (Information and Communication Technology) has made it possible to create new value by exhaustive digitization of all types of activities and intensive analysis and use as big data via the internet, etc. Steel companies are also involved in these efforts, for example, by creating DX (digital transformation) divisions, and the effects of these initiatives are beginning to appear. “Mathematical optimization technology,” which is one part of this approach, is a “problem-solving technique that derives the optimum solution for real problems for which solutions have not been found, even though the causal relationships and rules are known.” Mathematic optimization has a long history, and mathematical planning methods that realize optimization by mathematical methods have been developed. However, in real mathematical optimization, the difficulty of development and application due to the large number of complicated requirements was a problem. In recent years, it has become possible to solve mathematical optimization problems in an increasing number of cases as a result of enhanced computer performance, and in addition, substantial progress in data maintenance by diffusion of AI technology. Nippon Steel and NS Solutions Corporation jointly developed a “Tapping scheduling system” which quickly drafts production plans in the steelmaking process by applying mathematical optimization technique, and began full-scale operation at Nippon Steel’s East Nippon Works Kimitsu Area. Since steelmaking is a core process in the total production process in the iron and steel industry, skilled technicians had prepared weekly production plans until now, but this was extremely time-consuming work. The newly-developed system makes it possible to derive weekly plans at the same or a higher level than skilled technicians in a short time of several seconds to several minutes. In addition to preparing draft plans in an overwhelmingly short time in comparison with the conventional method, this has also established a system which makes it possible to prepare plans that totally satisfy quality, cost and delivery requirements by cooperation between the person in charge of weekly steelmaking plans and those in charge of downstream processes, together with evaluation and revision of plans.

For management of ship allocation in marine transportation of iron ore, coal and other raw materials, Nippon Steel constructed and operates a system that makes it possible to acquire information on ship operation in real time. In management of ship operation of imported raw material ships until now, the number of navigation days and anchorage days varied depending on the effects of weather, etc., and as a result, it was necessary to review operation plans from time to time. By making it possible to grasp the most recent information on ship operation of the imported raw material ships managed by the Nippon Steel raw material supply-and-demand management system, this development supports quick, flexible decision-making based on the most recent ship operation schedule and forecasts of raw material stocks, resulting in stabilized production and optimum management of raw material stocks. The system is also contributing to higher efficiency in the supply chain from raw material purchasing to transportation and production, and will also contribute to the realization of a carbon neutral society through improvement of ship operation and transportation efficiency.

“Digital twin” refers to a “simulation technique that virtually reproduces and duplicates, in cyberspace, the phenomena and artifacts that exist in physical space though large-scale data processing and modeling of phenomena based on data collected by advanced measurements and observations.” The range of use of digital twins has continued to expand in all fields in recent years. JFE Steel carried out technical development of new equipment which has an energy-saving effect and CO₂ reduction effect at the coke ovens at its West Japan Works (Fukuyama) by equipment design utilizing digital twin technology, and has begun standard operation. Moreover, JFE is already using digital twin technology in all production processes; for example, digital twin technology was used to shorten the period from a blast furnace shutdown to restarting from the conventional period of more than 6 months to about 2 months.

JFE Steel, JFE Logistics Corporation and NICHIJO Corporation completed the development of the basic functions related to automated transportation of steel products by special large-scale vehicles called “carrier pallet trucks” equipped with vehicle position recognition sensors, etc. at West Japan Works (Kurashiki) and have begun demonstration experiments. The aim is to address the issues of a future shortage of truck drivers (labor shortage) and improvement of the work environment. In this automated transport system under development, vehicle position recognition is performed based on satellite information from GNSS (Global Navigation Satellite System) and sensors including LiDAR (Light Detection and Ranging), etc. for autonomous, unmanned travel on preset routes. JFE Steel also developed a proprietary internal water-cooling mechanism that enables operation even in high-temperature environments, and developed a self-propelled cleaning robot for harsh conditions of high temperature, dust, and rough roads by incorporating this device in a self-propelled robot.

JFE Steel completed the transition of the shape steel product region of its West Japan Works (Kurashiki) core system to an open environment. The completion of this system renovation at a large-scale steel works which has blast furnaces and operates continuously 24 hours-a-day, and also uses mainframe computers (Fujitsu Limited), was a first for JFE Steel. JFE is promoting renovation of its core systems at all steel works and other places of business, targeting a company-wide completely open system from 2025. The company had previously completed the transition to an open system in the Head Office core system and at Sendai Works. Since the range of completion in the above mentioned project (shape steel product region) is equivalent to only 10% of the scale of the core system at Kurashiki, the company will continue to promote system renovation in the entire steel works. The transition to an open environment will enable a further acceleration of work reform utilizing data resources by achieving higher efficiency in the total supply chain through analysis of big data related to orders received, deliveries, etc.

2.4. Construction and Civil Engineering

Construction field: ZEH (“Zecchi”: net Zero Energy House) is a house that aims to achieve a net balance of zero primary energy consumption through the full year by substantially improving outer-skin insulation performance, etc. and introducing renewable energy, premised on achieving a large increase in energy saving while maintaining the quality of the indoor living environment, by the introduction of a high efficiency equipment system. In addition, ZEH-M (“Zecchi-Mansion”) targets multi-unit dwellings (apartments and condominiums) and ZEB (“Zeb”: net Zero Energy Building) targets other types of buildings. “NS Super Frame construction method^®,” a proprietary steel house construction method developed jointly by Nippon Steel and NS HI-PARTS Corporation, is one type of construction method using a thin steel plate, lightweight shape structure (“steel house”), and a structure consisting of walls, floor and some other parts made from framing and facing materials, like that used in conventional wood-frame 2 × 4 construction (framed wall construction method). The Super Frame construction method is continuing to evolve and develop. Nippon Steel TEXENG Co., Ltd. is promoting an apartment house design and construction method for the first certification of ZEH-M using this construction method (approval expected) in Oita Prefecture. The “NS Super Frame construction method^®” was also used in an energy-saving and high insulation office building constructed in Wakayama Prefecture by Nippon Steel TEXENG, which was completed in July 2023. By adopting a hybrid thermal insulation method (i.e., external insulation + fill insulation) using the industry’s top-level insulating material, this office building achieves insulation equivalent to Class 6 for steel-frame structures under the Housing Quality Assurance Act (with insulation performance to further exceed: insulation Class 4 corresponding to the energy-saving standard mandated for 2025 by the Building Energy Conservation Act, insulation Class 5 corresponding to the ZEH/ZEB standards, which are expected to be mandated by 2030). The building has been certified as “Nearly ZEB,” that is, a building approaching ZEB as nearly as possible.

Nippon Steel and Takenaka Corporation jointly developed a fireproof design technology for floor systems that reduces the fireproof coating of the small beams of steel-frame structures by a maximum of 100%, and have applied this technology in two projects. This was the first example in Japan of fireproof coverings of small steel-frame beams comprising a floor system to receive certification by the Minister of Land, Infrastructure, Transport and Tourism (MLIT) as a rationalized fireproof structure. In steel-frame type fireproof structures, the Building Standards Act specifies application of a fireproof covering to the steel frame, which forms the main structure of the building. However, use of this technology made it possible to reduce the area of the floor system requiring a fireproof covering to at most about 70%. This results in a reduction in the amount of materials used and shortening of the construction period, and is expected to contribute to a decrease in environmental impacts and improvement of productivity in building construction, which have become major social issues in recent years.

Civil engineering field: The “J-WALL II Construction Method,” which was developed jointly by JFE Steel and Obayashi Corporation together with Gecoss Corporation, was applied in a rainwater storage tank expansion project at Musashi Kosugi Station on the JR Yokosuka Line (construction completed in March 2023). In this expansion project, a construction method with excellent workability and economy was required because the rainwater storage tank was installed underground in the narrow range between the site boundary and a viaduct of the JR Yokosuka Line adjoining an existing rainwater storage tank. In the “J-WALL II Construction Method,” steel sheet piles for composite structures can be used as a temporary retaining wall and as part of the main structure. Therefore, by applying this method to the side walls of the rainwater storage tank, it was possible to construct a new rainwater storage tank that made the maximum possible use of the limited available space. Although there were previous examples of application of “J-WALL II” to underground retaining walls, this was the first application to a box culvert structure (box-shaped concrete structure constructed underground) at a location close to a railroad.

2.5. Moves Toward Carbon Neutrality

2.5.1. International Moves to Address Climate Change

The Paris Agreement, which is an international framework for climate change countermeasures with the participation of nearly 200 countries and regions, sets a target of limiting global temperature rise to not more than 1.5°C from the preindustrial level. According to reports to date by the United Nations Intergovernmental Panel on Climate Change (IPCC), assuming that global temperature rise will reach 1.5°C in about 10 years if emissions continue at their present pace, it will be necessary to reduce greenhouse gas (GHG) emissions by 45% in comparison with the 2010 level to achieve the target of 1.5°C by 2030. However, a report published by the United Nations Framework Convention on Climate Change (UNFCC) in November 2023 presented the results of an analysis based on verification of the GHG reductions (Nationally Determined Contributions: NDCs) in 2030 submitted to the United Nations by each of the world’s countries, which indicated that emissions in 2030 will increase by 8.8% from 2010, even assuming that all the participating countries achieve their GHG emission reduction targets.³⁴⁾ Thus, at present, global GHG emissions are not decreasing, but rather, show an increasing trend. The IPCC’s Synthesis Report for the 6th Assessment Report (AR6), published in March 2023, showed that a 60% reduction in GHG emissions in 2035 in comparison with 2019 will be necessary in order to achieve the target of the Paris Agreement, and rang a warning bell that the current reduction targets of all countries are “extremely inadequate”.³⁵⁾ Subsequently, the Joint Statement by the Group of 7 (G7) Ministers’ Meeting on Climate, Energy and Environment held in April 2023 included a “60% reduction from 2019 level” as the scale of reduction in GHG emissions by 2035, and agreed to an acceleration of the phase-out of coal, natural gas and other fossil fuels. Here, it may be noted that the statement avoids setting a clear timing for ending fossil fuel-fired thermal power generation, which Japan plans to rely on in 2030.³⁶⁾ The G7 meeting also agreed to begin the work of the “Global Data Collection Framework” for iron and steel production and CO₂ emissions toward coordination of CO₂ emission measurement methods, as multiple methods are used internationally.³⁷⁾ Continuing from these developments, the Outcome Document of the 28th session of the Conference of the Parties to the United Nations Framework Convention on Climate Change (COP28) in December also incorporated acceleration of the phase-out of fossil fuels over the next 10 years and a 60% reduction in GHG emissions from the level in 2019 by 2035, etc.³⁸⁾

On the other hand, based on the international framework for climate change countermeasures (Paris Agreement), the International Energy Agency (IEA) made a trial calculation of the renewable energy capacity needed to achieve the target of holding global temperature rise to no more than 1.5°C from the preindustrial level, and stated in its report of September 2023 that it will be necessary to expand renewable energy equipment capacity by 3 times that in 2023 in order to hold temperature rise to the targeted level by 2030. It is understood that this target is generally consistent with achieving global net-zero GHG emissions in 2050.³⁹⁾

2.5.2. Domestic Policy and National Projects

In February 2021, the Japan Iron and Steel Federation announced the “Basic Policy of the Japan Steel Industry on 2050 Carbon Neutrality Aimed by the Japanese Government,” in which it endorsed the Japanese government’s ambitious policy of achieving carbon neutrality in 2050. To contribute to this, the Japanese iron and steel industry also declared that it will aggressively take on the challenge of realizing “Zero-Carbon Steel.” Concretely, the industry will reduce CO₂ through the 3 Ecos of “Eco Processes,” which aim to reduce CO₂ in production processes by utilizing state-of-the-art energy-saving technologies and equipment, “Eco Products,” which promote energy saving in the use stage of products by supplying lightweight, strong, high functionality steel products, and “Eco Solutions,” which aim at CO₂ reduction at the global scale through transfer and dissemination of the world’s highest level energy-saving technologies to overseas countries. In particular, for “Eco Processes,” the industry set a goal of reducing CO₂ emissions in FY 2013 by 30% (approximately 57.90 million t-CO₂) to FY 2013, including the effects of introducing innovative technologies, as will be described below, and is actively working toward the achievement of that goal. Because realization of Zero-Carbon Steel is a challenge with extremely high hurdles, the industry will explore multiple pathways to CO₂ reduction by utilizing a combination of every possible means, including the challenge of drastic reduction of CO₂ emissions from the blast furnace plus CCUS (Carbon dioxide Capture, Utilization and Storage), and the development of “super innovative technologies” such as hydrogen reduction-based iron-making, etc., as well as expanded use of scrap, recovery of low- and medium-temperature waste heat and use of biomass, etc. Stable, large volume supplies of zero-emission (carbon-free) hydrogen and electric power and the development of economically rational CCUS processes will be indispensable for realizing these technologies.

In response to a call for applicants from NEDO, Nippon Steel, JFE Steel, Kobe Steel and the Japan Research and Development Center for Metals (JRCM) jointly proposed the development of a hydrogen reduction technology utilizing the blast furnace and the development of a direct hydrogen reduction technology in which low grade iron ore is reduced using only hydrogen to the “Green Innovation Fund Project/Hydrogen Utilization in Iron and Steelmaking Process Project (GREINS),” this proposal was adopted in December 2021 and currently technology development is underway. The implementation period is 10 years from FY 2021 to FY 2030, and although the budget was ￥193.5 billion when the proposal was adopted, the Ministry of Economy, Trade and Industry (METI) announced in September 2023 that development support for this project would be more than doubled, to ￥449.9 billion, to back the decarbonization of the iron and steel industry and move the timing of practical application forward.⁴⁰⁾ Substantial progress was achieved in the project in 2023. Nippon Steel conducted development tests of the Super COURSE50 technology, which uses heated hydrogen to reduce generation of CO₂, at a test hydrogen reduction furnace (inner volume: 12 m³) at East Nippon Works Kimitsu. As a result of the tests to date, the company announced in August 2023 that it had confirmed a 22% reduction of CO₂ emissions from the blast furnace, which is the world’s highest level. Because the prescribed results were obtained with this test furnace, the project decided to proceed to demonstration tests of hydrogen gas blowing technology based on hydrogen generated in the steel works at No. 2 blast furnace in the Nippon Steel’s Kimitsu Area, and will start introduction of the demonstration equipment for the hydrogen gas blowing technology with the aim of starting the demonstration test in January of 2026. This demonstration test of blast furnace hydrogen reduction iron-making using an actual large-scale blast furnace with an inner volume of 4500 m³ will be the first effort of its type in the world.

In addition to the GREINS project which is currently underway, government support for construction of equipment from the medium- to long-term viewpoints, stable, large volume supplies of zero-emission hydrogen and electric power, and support for the development of economically rational CCUS processes will also be indispensable for realizing Zero-Carbon Steel. Therefore, in order to support private-sector investment in decarbonization, the government announced that it will begin issuing GX (green transformation) economic transition bonds on a scale of ￥20 trillion over a 10-year period from FY 2023. The government will provide a total of ￥1.3 trillion over 10 years to support decarbonization of manufacturing industries such as iron and steel, chemicals, etc., and will promote a changeover to production processes with low CO₂ emissions, such as the electric arc furnace. For dissemination of hydrogen, which is expected to be a next-generation type of carbon-free energy, the government will provide ￥3 trillion in support to cover the price difference between hydrogen and existing fuels such as natural gas, etc. to encourage dissemination by holding down the cost of expensive hydrogen.⁴¹⁾ The GX bond plan raised ￥1.6 trillion in FY 2023, of which ￥900 billion was used to support research and development. In the breakdown of that amount, the largest single item, at roughly ￥250 billion, was development of hydrogen iron-making technologies.⁴²⁾ To achieve carbon neutrality by 2050, CCS (Carbon Capture and Storage) will also be necessary. Although there are plans for storage of 6 to 12 million tons in Japan in FY 2030, creation of a legal system for dissemination is also underway; this includes, for example, the establishment of “exploratory drilling rights” (prospecting rights) to confirm whether a site is suitable for storage or not, etc.⁴³⁾

As outlined above, it can be said that 2023 was the year when governmental support measures for the iron and steel industry, which is promoting decarbonization, were implemented in a forward-looking manner. Nevertheless, many issues still must be addressed. One is the carbon border tax that Europe is now introducing. The European Union (EU) has given final approval for the introduction of the “Carbon Border Adjustment Mechanism (CBAM; commonly known as the “carbon border tax”), which applies de facto customs duties to imports from countries with lax environmental regulations. From October 2023, companies that export to the EU are legally required to report the amount of CO₂ emissions of the products concerned, and actual taxation corresponding to the amount of emissions will begin from 2026. UK is also planning to introduce similar policies. The JISF has asked the EU to reduce the burden of reporting procedures, and since the objects of reporting also include information that may touch on the confidential corporate information, such as technologies, it has also stressed the necessity of establishing rules for maintaining confidentiality.⁴⁴⁾

2.5.3. Efforts of Individual Companies

Based on the “Basic Policy of the Japanese Steel Industry on 2050 Carbon Neutrality Aimed by the Japanese Government” of the Japan Iron and Steel Federation, in 2021 Japan’s 3 integrated steel makers have announced respective visions targeting the realization of carbon neutrality by 2050, and have positioned this a top priority issue for the management of each company. This has increased the level of activity in the initiatives of each of the steel makers.

[Direct reduction] Amid accelerating moves toward carbon neutrality worldwide, use of reduced iron is positioned as an important initiative for reducing CO₂ emissions. Kobe Steel conducted an actual plant demonstration of a technology that can reduce CO₂ emissions by 25% at a large-scale blast furnace (inner volume: 4844 m³) at its Kakogawa Works. In this demonstration test, a large amount of HBI (Hot Briquetted Iron; a form of reduced iron) produced by the MIDREX^® process was charged into the blast furnace. The results, which were published in October 2023, confirmed that the reducing agent ratio (RAR), which determines the amount of CO₂ emitted from the blast furnace, could be reduced stably to 386 kg/t-molten iron, and a CO₂ emission reduction of 25% from the level in FY 2013 could be achieved. Furthermore, in March 2023, Kobe Steel announced that the MIDREX Flex™ direct reduced iron process of Midrex Technologies, Inc., a wholly-owned subsidiary of Kobe Steel, had been adopted for the first time in the world for a hydrogen-reduced iron plant scheduled to be constructed at Düisburg Works of thyssenkrupp Steel. Although natural gas will be used as the reducing agent in the initial stage, thyssenkrupp plans to transition to a maximum of 100% hydrogen after 2027, when it is expected to become possible to procure an adequate supply of hydrogen.

Kobe Steel is also conducting a joint study with Mitsui & Co., Ltd. on commercialization of the manufacture and sale of the direct reduced iron product HBI produced by the MIDREX^® process, and announced in April 2023 that it had signed a memorandum of understanding (MOU) on comprehensive cooperation on the Low-CO₂ Iron Metallics Project in Oman with OPAZ (official name: Public Authority for Special Economic Zones and Free Zones). Production of 5 million tons/year of direct reduced iron is being studied. Although natural gas will be used as the reducing agent for the time being, further reductions in CO₂ emissions by replacing natural gas with hydrogen and application of CCUS, etc. will also be studied in the future. JFE Steel, together with the Japanese trading company Itochu, Emirates Steel Arkan, which is the largest steel maker in the United Arab Emirates (UAE), and Abu Dhabi Ports Group (ADPG) concluded a MOU on the development of collaborative systems for establishing a supply chain for Ferrous Raw Material for Green Ironmaking with Low Carbon Emission (low-carbon reduced iron; also called “Green Ferrous Material”), and are jointly conducting a detailed feasibility study with Abu Dhabi as the candidate project site.

[Electric arc furnace and scrap] Nippon Steel began commercial operation utilizing a newly-constructed electric arc furnace at Setouchi Works Hirohata Area in October 2022. However, because an early changeover from the blast furnace process to the electric arc furnace process is considered necessary to contribute to the government’s goal of achieving a 46% reduction in greenhouse gas (GHG) emissions, the company announced in May 2023 that it will begin a full-scale study of the process changeover, targeting Kyushu Works Yahata Area and Setouchi Works Hirohata Area as the candidate sites. JFE Steel is conducting a study of shutting down one blast furnace at the timing of a relining scheduled for the 2027–2030 timeframe, and introducing a high efficiency, large-scale electric arc furnace at its West Japan Works (Kurashiki). The company’s East Japan Works (Chiba) has adopted a stainless steel steelmaking process that uses molten pig iron from the blast furnace, home scrap generated in the steel works, and chromium ore and chromium-containing dust as the main raw materials, and plans to introduce a rotating furnace body-type electric arc furnace from Daido Steel with the aim of reducing CO₂ emissions from this process, with startup scheduled for FY 2025. A maximum CO₂ emission reduction effect of 450000 t/y is expected.

Since electric power consumption is still large, even after the blast furnace-electric arc furnace changeover, it is necessary to promote further energy saving in the electric arc furnace, based on the CO₂ emitted in the power generation process. In an electric arc furnace, steel scrap is melted by inserting electrodes, which pass a large quantity of electricity, into the furnace from the furnace top. In conventional operation, the electrodes were raised and lowered mechanically based on the measured quantity of electricity, regardless of the condition in the furnace, but as a result, the furnace consumed more electricity than necessary. JP Steel Plantech Co. developed a technology that reduces power consumption by using AI to judge electrode raising/lowering based on the real-time furnace conditions, such as the condition of steel scrap melting in the furnace, etc., and has begun demonstration experiments.⁴⁵⁾ On the other hand, JFE Bars & Shapes Corporation introduced an energy-saving type power supply system for steelmaking from an overseas manufacturer at its Himeji Works, and aims to begin operation in 2025. Osaka University is promoting energy-saving efforts by achieving waste-free operation of the electric arc furnace through the construction of an AI system that judges the timing when the steel scrap in the furnace is completely melted based on furnace noise and vibration in place of the judgment of a skilled operator, and is conducting demonstration experiments with an electric arc furnace manufacturer.⁴⁶⁾

[CCS] In January 2023, Nippon Steel, the Japanese trading company Mitsubishi Corporation, and ExxonMobil announced that the three companies had signed a memorandum of understanding (MOU) concerning a joint study on the construction of overseas carbon capture and storage (CCS) in the Asia-Pacific region, including Australia, etc. and the establishment of CCS value chains. Based on the MOU, the companies will investigate the recovery of CO₂ emitted from the Nippon Steel’s domestic steel works and evaluate the necessary infrastructure development. ExxonMobil will be responsible for carrying out a survey of potential overseas CO₂ storage sites in the Asia-Pacific region, beginning with Australia, Malaysia and Indonesia, while Mitsubishi Corporation will conduct an evaluation of overseas transportation of CO₂ and the development of CCS value chains. In addition, in response to an open call for the FY 2023 “Survey on the Implementation of Advanced CCS Projects” by the Japan Oil, Gas and Metals National Corporation (JOGMEC), the three companies were commissioned to carry out a feasibility study on the development of overseas CCS value chains for CO₂ emitted from multiple industries in Japan’s Ise Bay/Chubu region, and are accelerating these activities.

JFE Steel and the Japan Petroleum Exploration Co., Ltd. (JAPEX), JGC Holdings and Kawasaki Kisen Kaisha, Ltd. (K Line) announced in June 2023 that those have signed a MOU in which they greed to conduct a joint study aimed at the establishment of a CCS value chain originating from Japan, aligned with a study on CCS in Malaysia being carried out with Malaysia’s national energy company Petronas. In the joint study by the four companies, the companies will study the establishment of a CCS value chain from separation and recovery of CO₂ emitted from JFE Steel’s domestic steel works through marine transportation and receiving of liquefied CO₂ in Malaysia, including the required facilities and costs. In December 2023, JFE Steel announced that it had agreed with Sumitomo Corporation, Sumitomo Osaka Cement Co., Ltd., Kawasaki Kisen and the Australian company Woodside Energy Ltd. to carry out a feasibility study toward the realization of the “Setouchi/Shikoku CO₂ Hub Concept,” and the five companies had signed a MOU to this effect. Under the MOU, the five companies are to carry out a feasibility study on the establishment of a CCS value chain in which small-sized liquefied CO₂ transport ships are used to collect CO₂ from emitters scattered across the Setouch and Shikoku regions, the CO₂ is accumulated and stored temporarily at a hub port for CO₂ exports located in Japan, and is then transported to Australia by large liquefied CO₂ carriers for sequestration and storage. The aim of this concept is to upscale the CCS process and reduce costs by collecting CO₂ emitted from multiple regions, industries and companies in the Setouchi and Shikoku regions, and thereby make it possible for Japanese and Australian companies work together to build an integrated CCS value chain, which would be difficult for individual companies.

In recent years, we have come to understand the effects of “blue carbon” (absorption and fixing of CO₂ by marine ecosystems), by which seaweed and marine algae absorb large amounts of the atmospheric CO₂ which is considered to cause climate change and global warming. As a result, blue carbon has attracted attention as a major element in CCS. Since it has been suggested that restoration and creation of seaweed beds has a large potential effect as a measure to prevent global warming, blast furnace steel makers are also participating in the creation of credits (emissions framework) for blue carbon. Nippon Steel is promoting “Creation of sea forests” and “CO₂ absorption and fixing by seaweed beds (blue carbon)” by regenerating seaweed beds through the installation and expansion of iron supply fertilizer units in waters where rocky-shore denudation (sea desertification) has occurred, while JFE Steel has created seaweed beds using iron and steel slag products and calculated the amount of CO₂ absorbed thereby. Both companies have received certification for blue carbon credits from the Japan Blue Economy Association, a blue carbon certification corporation approved by Japan’s Minister of Land, Infrastructure, Transport and Tourism (MLIT).

[Hydrogen] In overseas, steel manufacturing using hydrogen produced from low-environmental load electric power is being promoted. In Europe, Ovako, a wholly-owned European subsidiary of Sanyo Special Steel Co., Ltd., a member of the Nippon Steel Group, completed a green (carbon-free) hydrogen plant that was under construction at its Hofors steel works in Sweden and held the inauguration ceremony in September 2023. The green hydrogen plant has a carbon-free hydrogen production capacity of 4000 m³/h by electrolysis of water utilizing non-fossil electric power. By using this hydrogen as the fuel necessary for the production of special steels, Ovako can substantially reduce the CO₂ emitted in the steel heating process at its Hofors plant. However, due to the high cost of hydrogen produced using low-environmental load electric power in Japan, similar attempts are considered difficult in this country, at least in the near term. Thus, a reduction in the cost of hydrogen procurement through joint efforts by the government and private sector, or the creation of a mechanism that makes it possible to pass the cost of hydrogen through to the consumer is desired.

In Japan, study toward receiving imported hydrogen is beginning. Since a large number of industries are clustered in the Mizushima Industrial Complex, this is an area where large-scale use of hydrogen is expected in the future. In October 2023, JFE Steel announced that it had launched a collaborative study on the development and use of receiving, storage and supply facilities for CO₂-free hydrogen in this area with ENEOS Corporation, Japan’s largest fully-integrated oil company. The companies aim to establish a CO₂-free hydrogen supply chain by 2030 and will study expansion of the supply chain envisioning expanded use of hydrogen post-2030 and effective hydrogen utilization methods for the realization of a decarbonized society. JFE Steel also plans to build a hydrogen receiving base at the site of the former No. 2 blast furnace at East Japan Works (Keihin), which was shut down in 2023, and foresees demand from the surrounding industrial complex and thermal power plant. The company plans to develop the site as a receiving base for hydrogen from FY 2024, and a demonstration project is scheduled to begin in FY 2028.⁴⁷⁾ Kobe Steel began a demonstration test of a “hybrid-type hydrogen gas supply system” at its Takasago Works from March 2023 as scheduled, and also began hydrogen mixed firing in a hydrogen combustion test by hydrogen supply to a test boiler from June 2023. The system comprises a cryogenic liquid hydrogen vaporizer that can recover the cold energy generated by vaporization of the liquid hydrogen, a water electrolysis-type hydrogen generator (High Purity Hydrogen Oxygen Generator: HHOG) and an operation management system, and was developed with the aim of providing solutions for “stable and economic hydrogen production,” which will be the key to the introduction of hydrogen by small- and medium-size businesses.

[Wind power generation] Among the various types of renewable energy, it is also possible to secure economy with wind power if power can be generated on a large scale. In particular, offshore wind power, which has the potential for large-scale introduction, is planned in Japan. To expand the amount of wind power generation, etc., it is necessary to upscale the wind turbine, and the foundation structure that supports it. Foundation structures are classified as the jacket type and the monopile type, and technical development of both is underway in Japan. Nippon Steel Engineering Co., Ltd. manufactured Japan’s first jacket-type foundation, in which the wind turbine is supported by inserting the jacket legs into piles driven into the sea bottom, for fixed bottom-type offshore wind power generation equipment scheduled to begin operation in FY 2023 in Ishikari Bay (Hokkaido), and finished offloading by June 2023. The same company will also supply jackets to Kitakyushu district, where operation of wind turbines is scheduled in 2025.⁴⁸⁾ On the other hand, because monopile-type foundation structures are fabricated by welding extra-heavy steel plates, the load of welding work is high and improvement of work efficiency is an issue. JFE Steel reduced the number of welding operations by developing a large unit weight steel plate for wind power generators, and announced that this plate had been adopted in monopiles for offshore wind power for the first time in August 2023. Daido Steel obtained certification for the manufacture of critical parts of wind power generators for its mass production technology and quality assurance system in the production process for bearing steel for critical parts of wind power generators. With accelerating moves toward carbon neutrality, high expectations are placed on offshore wind power generation as a form of green energy, and further expansion of the offshore wind power business is foreseen in the future.

[Low CO₂ blast furnace steel] In “low CO₂ blast furnace steel,” the mass balance method is used to allocate the CO₂ emission reduction effect of the maker’s processes to specific products. Since this type of steel was marketed for the first time in Japan by Kobe Steel in May 2022, there have been expanding moves to adopt low CO₂ blast furnace steel in various steel-consuming fields, including shipbuilding, automobiles, the construction field, etc. In products for the shipping industry, Kobe Steel’s “Kobenable^® Steel” was adopted in a 180000 ton class bulk carrier built by Imabari Shipbuilding Co., Ltd. in February 2023, which was a “world’s first” in the ship field. JFE Steel’s “JGreeX™” green steel products will be used in dry bulk carriers that are scheduled to be built by 8 shipping companies, including NYK Bulk & Projects Carriers, Ltd. JFE Steel has also constructed a new business model whereby the cost of CO₂ reduction is shared widely among the parties related to the supply chain, and Kawasaki Kisen Kaisha (K Line) is also planning to apply this business model when it adopted “JGreeX™” steel material in an ultramax class dry bulk carrier which is scheduled to be completed by Imabari Shipbuilding. In the automotive field, Kobe Steel’s “Kobenable^® Steel” is used in the company’s untampered bolt steel for the engine component fastening bolts of racecars built by Toyota Motor Corporation, and Nippon Steel’s “NSCarbolex^® Neutral” was adopted in shipping containers owned by Atago-Body Co., Ltd. For use in transporting recycled resources. For construction field, JFE Steel’s “JgreeX™” has been adopted in an office building (tentative name: Suidobashi PREX) to be developed by Sumitomo Corporation. In energy-related applications, Nippon Steel’s “NSCarbolex^® Neutral” was adopted in 13% Cr steel seamless OCTG and grain-oriented electrical steel sheets by the Dutch geothermal development company 85 Degrees Renewables and the power-generating equipment manufacturer GE Vernova, respectively. In other applications, “NSCarbolex^® Neutral” has been adopted in wire rod material for saw wire and as a material for vessels and other containers.

[Regional cooperation] In addition to broad reductions in CO₂ emissions by local governments and businesses that manage ports, Japan’s Ministry of Land, Infrastructure, Transport and Tourism (MLIT) is also encouraging the development of supply networks for hydrogen fuels and renewable energy. Accompanying those efforts, moves to start up joint councils of industry, academia and government agencies are also accelerating.

In Ibaraki Prefecture, the Ibaraki Carbon-Neutral Industrial Base Creation Project was launched in 2021 with the participation of companies such as Nippon Steel, Tokyo Gas Co., Ltd., Mitsubishi Chemical Corporation, etc., as well as universities, research institutes and others, and a working group on the establishment of an ammonia supply chain was established. The feasibility of this project will be investigated and studied with the aim of adoption when the national government selects the sites for carbon-neutral fuel bases in the future.⁴⁹⁾ A total of 10 companies, comprising Yokogawa Electric Corporation and 9 manufacturing companies with operations in the Keiyo Coastal Industrial Complex in Chiba Prefecture, including Iwatani Corporation, JFE Steel, etc., will jointly study decarbonization in the region of the industrial complex from the Soga District in Chiba City to the Goi District in Ichihara, and will compile a set of concrete measures that contribute to reduction of CO₂ emissions by around 2030.⁵⁰⁾ The “Chubu Hydrogen Utilization Council,” which was established in 2020, is studying the possibility of large-scale utilization of hydrogen, aiming at expansion of hydrogen demand and the development of hydrogen supply chains to enable stable use. Although Nippon Steel, JFE Steel, Toyota Motor Corporation, etc. are already participating in this group, Daido Steel and Aichi Steel Corporation joined as new members from this year. In Okayama Prefecture, the “Carbon Neutral Network Council” of the Mizushima Industrial Complex includes Okayama University, local governments, etc. in addition to major corporations such as JFE Steel, Asahi Kasei Corporation, Chubu Electric Power Co., Ltd., etc. The group finalized a policy on initiatives related to the introduction of next-generation energy, namely, hydrogen and ammonia, and gave concrete form to efforts, for example, by establishing expert technical committees in FY 2023.⁵¹⁾ In the Shunan Industrial Complex in western Japan, 5 companies located in the complex, including Nippon Steel Stainless Steel Corporation, Idemitsu Kosan Co., Ltd., etc., are studying joint efforts such as the establishment of power plants fueled by ammonia, etc., purchasing of low-CO₂ emission raw materials, CO₂ capture and storage, etc. toward realization of carbon neutrality, and the Fair Trade Commission has ruled to the effect that these joint actions are not a problem in terms of Japan’s Anti-Monopoly Law (official name: Act on Prohibition of Private Monopolization and Maintenance of Fair Trade).⁵²⁾ The “Fukuoka Prefecture Hydrogen Green Growth Strategy Council” is an organization with participation by companies inside/outside the prefecture, such as Nippon Steel, Iwatani Corporation, Kyushu Electric Power Co., Ltd., etc., as well as persons affiliated with universities in the Kyushu region, and aims to expand the use of hydrogen and realize technical innovations. A plan for the development of a large-scale production/importing base for “green hydrogen” in the coastal area of Kitakyushu City has been worked out, and is expected to lead to the development of hydrogen supply chains inside and outside Fukuoka Prefecture, as well as development or attraction of related industries.⁵³⁾ In Oita Prefecture, the “Green Industrial Complex Oita” promotion council was established as an industry-academia-government group to study inter-company collaboration toward decarbonization of the industrial complex in Oita City and ways of linking this effort with the surrounding region. Eleven companies, including Nippon Steel and Resonac Corporation, and university-affiliated persons are participating, with the goal of having Oita selected as one of about 8 hydrogen/ammonia supply bases that are expected to be built nationwide in the next 10 years.⁵⁴⁾

3. Technology Trade and Development

3.1. Technology Trade

Figure 5 shows the transition of the balance of technology trade in the steel industry up to FY 2022.⁵⁵⁾ The total amount of payments received for technology exports increased by 50% from FY 2021, while payments for technology imports also increased by 400%.

Fig. 5. Technology trade balance of steel.⁵⁵⁾

3.2. Research Expenditures and Number of Researchers

The following three items up to FY 2022 were arranged using 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 Statistic Bureau, Ministry of Internal Affairs and Communications. The results for each item are shown in Figures 6, 7, 8.⁵⁶⁾

Table 3. Main organization in technology creation activities of Production Technology Division.

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 and steel related 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:	Practical Structural Steels Committee, “Desirable Steel Materials for Automobiles (10th 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.

Fig. 6. Trend of the ratio of research expenditure to sales.⁵⁶⁾ (Online version in color.)

Fig. 7. Trend of the number of researchers per 10,000 employees.⁵⁶⁾

Fig. 8. Trend of R&D expenditure per researcher (10 M yen/person).⁵⁶⁾

[Ratio of Research Expenditures to Sales] In comparison with FY 2021, this item decreased by 0.16 points for all industries and by 0.14 points for steel industry. However, it may be noted that research expenditures actually increased in all industries and were flat in the steel industry, but because sales increased in both cases, the ratio of research expenditures to sales showed decreases for both all industries and the steel industry.

[Number of Regular Researchers per 10000 Employees] All industries showed a decrease from FY 2021, while the trend was flat in the steel industry. Although the number of researchers in all industries increased, the total number of employees showed a larger increase, resulting in a decrease in the number of regular researchers per 10000 employees.

[Research Expenditures per Regular Researcher] In all industries, this item increased at a high level until 3 years ago. In the steel industry, the results were on the same level as in the FY 2021, when research expenditures per regular researcher decreased.

3.3. Trends in Research and Development Utilizing Public Funds

Among iron and steel-related research and technology development themes being carried out with public funds, a large number of themes were in the fields of processes, environment/energy, materials development, etc. The main themes are shown in Table 2. The main continuing projects in iron and steel-related technology development projects included “Development of Technologies for Carbon Recycling and Next-Generation Thermal Power Generation” (FY 2016–2025, managing organization: NEDO), “Research, Development and Demonstration of CCS Technology” (FY 2018–2026, managing organization: NEDO), “Green Innovation Fund Project/Hydrogen Utilization in Iron and Steelmaking Processes” (FY 2021–2030, managing organization: NEDO), “Green Innovation Fund Project/Development of Next-generation Storage Batteries and Motors” (FY 2022–2030, managing organization: NEDO) and “Thermally Stable Corrosion Resistant Alloy (CRA) and Sealing Technology for Enhanced Geothermal Power Systems” (FY 2022–2023, managing organization: The Nippon Foundation). New project which started during FY 2023 was “Technology reducing the effect of tramp elements from steel scrap” (FY 2023–2025, managing organization, NEDO).

Table 2. Examples of themes utilizing public funds in steel industry.

Class	Name of project	Managing organization	Start (FY)	End (FY)
Global environment/ Carbon neutrality	Green Innovation Fund Projects/Hydrogen Utilization in Iron and Steelmaking Processes	NEDO	2021	2030
	Green Innovation Fund Projects/Development of Next-generation Storage Batteries and Motors	NEDO	2022	2030
	Thermally Stable CRA & Sealing Technology for Enhanced Geothermal Systems	Nippon Foundation	2022	2023
	Research and Development on Technology Reducing the Effect of Tramp Elements from Steel Scrap	NEDO	2023	2025
Element technologies	Development of Technologies for Carbon Recycling and Next-Generation Thermal Power Generation	NEDO	2016	2025
	Research, Development and Demonstration of CCS Technology	NEDO	2018	2026
Others	Project for Super-Rapid Development Infrastructure Technologies for Super-Advanced Materials	NEDO	2018	2023

NEDO: New Energy and Industrial Technology Development Organization

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 special courses, Advanced Iron and Steel Engineering Seminars), human resources training programs for students, technical courses and Web lectures/courses on an ongoing basis for the purpose of developing cross-industry human resources. Although society continued to move beyond the effects of the COVID crisis in FY 2022, further progress was made in FY 2023, and with some exceptions, the ISIJ resumed its in-person activities at the pre-COVID scale.

In human resources training programs for students, in addition to the “Student Iron and Steel Seminars” which the ISIJ has conducted for many years, the ISIJ took over the “Industry-Academic Partnership for Human Resources Development” in FY 2011 and conducts the “Introduction to Iron and Steel Engineering Seminar” for master’s course students and the “Experiential Seminar on Advanced Iron and Steel” for undergraduates. The “Introduction to Iron and Steel Engineering Seminar” is a 3.5 day course featuring lectures by university and company instructors on basic iron and steel engineering and technology development at production sites, followed by a plant tour (in FY 2023, this was conducted at JFE Steel West Japan Works (Fukuyama)) on the final day with the participation of 31 students from 11 universities. The “Experiential Seminar on Advanced Iron and Steel” is a one-day course consisting of an introduction to advanced iron and steel-related technologies and the outlook for the future, together with a plant tour. In FY 2023, Experiential Seminars were held at four locations (JFE Steel East Japan Works (Chiba), Nippon Steel Kansai Works, Wakayama Area, Nippon Steel North Nippon Works, Muroran Area and Daido Steel Chita Works) with a total of 60 persons participating. “University Special Lectures by Top Management” by top managers of steel companies were held at 11 universities and “Special Lectures on Iron and Steel Technology” by the Executive Director of the ISJI were held at 11 universities, attracting a total of approximately 2000 students.

As corporate human resources training programs, “Iron and Steel Engineering Seminars” and “Advanced Iron and Steel Seminars” were held on a face-to-face basis. The scale of the “Iron and Steel Engineering Seminars” was expanded from FY 2022 to about 70% of the scale in normal years, and the “Advanced Iron and Steel Seminars” were also held in-person from FY 2023 on the same scale as before the COVID crisis. Five “Iron and Steel Engineering special courses” were held in-person, and one special course was held online.

The following two Technical Lectures were also held: The Nishiyama Memorial Lecture on themes concerning recent progress in steel-related research, technology, equipment, etc. (2 technical themes, 2 times each, total of 4 lectures) and Shiraishi Memorial Lecture, which consists of lectures related to various types of technologies in related fields that contribute to the progress the iron and steel industry (1 theme, total of 1 lecture).

In addition to the above-mentioned projects, the ISIJ continued a project for education/educational support to convey the appeal of steel to high school and technical college students which began in FY 2022. Concretely, this project consists of three programs, i) Expansion of eligibility to participate in plant tour programs (travel expenses paid) (expansion of eligibility from university undergraduates to students in high schools, technical colleges and the entire university, including graduate students), ii) Financial support for university education teaching visits to high schools and technical colleges and iii) Preparation of video educational materials which can be used as study materials in high schools and technical colleges.

In addition, the ISIJ continued to offer online lectures and courses for individual members of the ISIJ, which were also begun in FY 2022. This program provides three types of content, i) Lectures on industries, government policies and technologies related to iron and steel (ISIJ web lectures), ii) Lectures on the front line and trends in iron and steel technologies (Web lecture: Front Line of Iron and Steel Technology Series) and iii) Course on Basic Iron and Steel Technologies (Web course: Introductory Course Series). The main purpose of iii) is to provide a commentary on articles published in the introductory course in the Bulletin of the ISIJ, “Ferrum,” so that comparatively young iron and steel engineers and researchers can acquire an understanding of the related scientific background and peripheral technologies. These are also useful study materials for students and other beginners.

5. Technology Creation Activities in the ISIJ

The ISIJ surveys technical information related to iron and steel production technologies, identifies issues for technology development and carries out activities for problem-solving, centering on Technical Committees and Interdisciplinary Committees, which belong the ISIJ’s Technical Society. For issues related to carbon neutrality in iron and steel, the ISIJ established a new “Committee on Carbon-Neutral Steel” in April 2022, which took over the recommendations of its predecessor, the “Committee for Global Warming Mitigation Technologies for the Steel Industry” (abbreviation: CGS), and conducts activities of the ISIJ as a whole, not limited to the Technical Society, but also including the Academic Division.

5.1. Technical Committees

Technical Committees, which promote activities related to iron and steel production in each of their designated fields, hold regular Committee Meetings and actively discuss current key issues each year as common/important topics (Table 3). With the end of restrictions on action due to the COVID-19 pandemic, which had continued for approximately 3 years, the Technical Committees resumed their full range of activities in FY2023, including some that had been postponed during the pandemic. In addition, the online and hybrid meeting formats, which were widely used during the pandemic, were firmly established as efficient methods of operation, even after the end of the pandemic. A total number of 2500 persons participated in FY 2023 Technical Committee conferences, including online participation (number in FY 2022: 2436), and 53 researchers from universities, etc. also participated (number in 2022: 56).

5.2. Interdisciplinary Technical Committees

Interdisciplinary Technical Committees study inter-industry and interdisciplinary technical issues and four committees were active during 2023 (Table 3). As in normal years, the Committee on “Desirable Steel Materials for Automobiles” held a joint symposium with the Society of Automotive Engineers of Japan (JSAE) and the Japan Institute of Metals and Materials. The Committee on “Materials for Pressure Vessels” finished a certain role, having produced many important results since it was inaugurated in 2011, and concluded its activities in FY 2023. In the “Practical Structural Steels Committee” the “Working Group on Application of GX/DX Technologies to Practical Steel Structures” began its activities from FY 2023, and held group discussions, etc. Continuing from FY 2022, the Committee on “Structural steels and their related technologies for steel structures” studied issues related to new construction, expansion and improvement, and design and execution of steel structures, mainly in steel works.

5.3. Research Grants

The system of research grants of the ISIJ is shown in Table 4. In “Grants for Promotion of Iron and Steel Research,” 26 new projects (including 15 by young researchers) were selected to begin receiving grants from FY 2023. Combined with the 29 projects started in FY 2022, a total of 55 projects based on grant themes were carried out in FY 2023. In the new program “Grants for Research on Carbon-Neutral Steel,” which was established in FY 2022, 23 projects were newly selected to begin receiving grants from FY 2023. Including 18 projects with 2-year periods that were started in FY 2022, a total of 41 projects based on grant themes were carried out in FY 2023.

Table 4. 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:	26 (number of aid recipients in FY 2023).
Grants for Research on Carbon-Neutral Iron and Steel	• Purpose:	Clarification of issues to be addressed by the ISIJ for prevention of global warming.
	• Application process:	Selected by public invitation; in principle, period of activity is 1 year or 2 years.
	• Features:	Supports research contributing to carbon neutrality/green transformation (GX) in which study has already begun and emerging research still in the stage of ideas, and includes chemical engineering, mechanical engineering, electrical engineering, etc. in addition to iron and steel.
	• Number of projects:	23 (number of recipients for FY 2023).
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:	21 (number in progress at end of December, 2023).
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 each year based on 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:	3 (number in progress as of end of December, 2023).

“Research Groups” are grants for joint industry-academic teams. In FY 2023, 21 Research Groups were active, and 9 of those groups concluded their activities at the end of the fiscal year. Of the Research Groups that newly began activities in FY 2023, 5 projects were classified as Research Group I (“Seeds type”), while 1 project was classified as Research Group II (“Needs type). Among Research Groups beginning from FY 2024, 3 projects are classified as Research Group I and 3 as Research Group II. In ISIJ Research Projects, 3 were active in FY 2023, and 1 project began activities from FY 2023. One project is scheduled to newly begin activities from FY 2024.

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