JFE Steel, the second-largest steel manufacturer in Japan, revised its crude steel production forecast for the fiscal year ending March 31, 2023, to 25 million tons, lower than its August forecast of 26 million tons, due to weak demand.

JFE Steel is facing higher costs of imported raw materials due to the depreciation of the yen against the US dollar. The yen's depreciation is likely to restrict steel imports, but it could help to keep the competitiveness of Japan's domestic steel products amid imported materials.

Supported by the Chinese government’s economic stimulus and demand in the autumn, steel demand and steel markets were expected to recover from January to March next year.