According to Japan's Ministry of Economy, Trade and Industry (METI)'s forecast based on local steel companies' production plan for the next two months, Japan's crude steel production was expected to be 22.13 million tons in the fourth quarter of this year, up by 1.4% quarter on quarter and down by 8.5% year on year. The production of finished steel would be 19.74 million tons, a quarter-on-quarter increase of 6.6% and a year-on-year decrease of 5.1%.

In spite of the rebounded output in the fourth quarter, the consecutive three-quarter decrease in crude steel production would cause the annual output to be approximately 88 million tons.

In addition, METI said that the procurement of automobiles and semiconductor components has improved, but some automobile enterprises are planning production cuts. Moreover, the recovery in demand might be slow due to the weak construction industry.