TOKYO, Dec 26 Reuters Japan39;s crude steel output is expected to fall 2.4 in the first three months of 2025 due to slow demand from the manufacturing and construction sectors, the Ministry of Economy, Trade and Industry METI said on Thursday.

The forecast would bring the world39;s thirdlargest steel producer39;s annual output for the fiscal year ending March 31 to 83.72 million metric tons, down 3.6 from a year earlier. It marks the lowest output since fiscal 2020, when the COVID19 pandemic eroded demand.

Steel demand will likely remain sluggish due to weak demand from manufacturers including automakers and from the construction sector, Manabu Nabeshima, director of METI39;s metal industries division, told a news conference.

The ministry estimated crude steel output to be 20.93 million metric tons in JanuaryMarch, down from 21.45 million tons a year earlier. It would log a 0.1 drop from the current quarter.

Demand for steel products, including those for exports, is forecast to fall 0.5 to 19.09 million tons in JanuaryMarch compared with a year earlier, the ministry said, citing an industry survey.

Exports are forecast to fall 0.4, the ministry said.

The Japan Iron and Steel Federation projected on Wednesday that the country39;s crude steel output in fiscal 2025 will see a slight increase compared to the current year.

However, the federation39;s chairman, Tadashi Imai urged the government to take swift trade measures against rising steel imports from China to…