Japan's manufacturing sector continues to experience a slowdown, as indicated by the latest manufacturing Purchasing Managers' Index (PMI). In June, Japan's PMI registered at 50, down slightly from 50.4 in May, reflecting subdued activity levels.

The automotive industry has been significantly impacted, with several models facing certification issues that diverge from national standards, affecting demand for automotive steel. Toyota's decision to halt production of three models in Japan and Mazda's suspension of shipments further underscore the sector's challenges.

Additionally, Japan's construction industry is grappling with labor shortages following new government regulations on overtime limits, restricting construction workers to 720 hours of overtime annually since April 1.

Tokyo Steel Manufacturing Co., Ltd has maintained product prices from February through July, citing uncertainties in the automotive sector and tight labor markets in construction as key factors influencing their pricing decisions.