Reuters reported that Japan's crude steel output marked the biggest year on year fall on record in March as global demand for cars and electronics crumbled, while a strong yen made Japanese steelmakers' exports less competitive overseas.

Japan Iron & Steel Federation said that Japan's output in March 2009 fell by 46.7% YoY to 5.74 million tonnes, dropping for the sixth straight month. The year on year percentage decline in monthly output was the biggest since the industry body started compiling data in January 1949.

Big steelmakers including Nippon Steel Corporation and JFE Holdings Inc have slashed output as sliding sales and bloated inventories forced big steel users such as Toyota Motor Corporation and other automakers to cut output.

The Trade & Industry Ministry expects Japan's April to June 2009 quarter crude steel output to stay flat from the previous three months before recovering in July to September 2009 quarter, underscoring the difficulties its steel mills are experiencing.

Crude steel output in the financial year that ended on March 31st 2009 came to 105.5 million tonnes, down by 13.2% YoY.

(Sourced from Reuters)