According to the Institute of Energy Economics, Japan (IEEJ), Japan's crude steel production was expected to pick up from April 2025 to March 2026 due to production growth in domestic industries.

IEEJ also predicted that Japan’s crude steel production will rise by 4.1% in 2024-25, reaching 86.5 million tons, the first increase in four years.

The production recovery was mainly due to the rebound in industries such as automobiles, electrical, and industrial machinery, said IEEJ. Japan's automobile production will increase by 1.8% year on year to 8.9 million units. Investments in digital and green transformation will support steel demand.

Additionally, IEEJ expected Japan’s steel product exports to grow by 1.2%. However, Japan’s crude steel production was sluggish in 2024, partly due to weak construction and automotive demand, and steel demand was under pressure as rising material costs and labor shortages affected construction projects.