Recently, the Ministry of Economy, Trade and Industry said that due to trade tensions and economic uncertainty, exports are expected to decline by 0.1% from October to December.

According to the Japanese Ministry of Commerce, crude steel production is expected to be 25.69 million tons, compared with 25.7 million tons in the same period last year. Output declined for the fifth consecutive quarter. Output for the quarter is expected to increase by 0.8% from the previous quarter. Demand for steel products, including exports, is expected to fall 2.9% year-on-year to 22.92 million tons. Exports typically account for around 40% of Japan's steel production and are expected to fall by 1.4%.

Kuroda, head of the Metal Industry Department of the Ministry of Economy, Trade and Industry, said at a news conference that trade tensions and uncertainties surrounding China's economic prospects are expected to continue to affect exports and production. A weaker consumer demand for last-minute purchases before the sales tax is raised may also hurt the manufacturer. Increasing public spending on infrastructure to prevent major disasters may mitigate some of the negative effects.

Kuroda said that production may be lower than the latest forecast because it does not reflect the recent shutdown of some steel mills.