Japan plans to increase steel output between July and September

Japan's crude steel production is expected to rise 2.3 percent during July-September from the previous year amid strong local demand for cars, industrial machinery and construction, the country's industry ministry said on Monday.

The Ministry of Economy, Trade and Industry (METI) estimates that steel production will rise to 26.54 million tonnes over a three-month period, representing the fourth consecutive quarter of year-on-year growth.

Exports, which typically account for about 40 percent of Japan's steel production, are expected to rise 1.1 percent from the previous year, the ministry said despite trade wars.

The United States and China exchanged early gestures last Friday in what could be a protracted trade war, rolling in tariffs on each other's $ 34 billion worth of goods and showing no sign of willingness to begin negotiations aimed at reaching a truce.

In March, US President Donald Trump came forward with higher import tariffs on steel and aluminum after his complaints about Chinese production flows in world markets and damaging the American steel industry.

The METI forecast does not reflect any significant impact from US tariffs, Yasuji Komiyama, director of the metal industry at Japan's Ministry of Industry, said at a news conference on Monday.

“It is difficult to predict how US tariffs will affect Japan's exports in the current quarter,” he said. “In addition, Japanese steelworkers have been busy to meet robust demand in the local market, limiting the increase in their exports,” he said.

But the government is closely monitoring how escalating trade tensions will affect the steel market and global metal product flow, Komiyama said.

Demand for steel products, including exports, is expected to rise 0.7 percent to 23.75 million tons in July-September a year earlier, the ministry said, citing an industry study. Exports are expected to increase by 1.1 percent.