TOKYO:

Crude steel output stayed at a high level in December buoyed by steady exports to Asia, although October-December output slightly fell short of the government's forecast due mainly to blast furnace trouble at Sumitomo Metal Industries Ltd and flagging car sales in Japan following an end to government subsidies.

"A solid recovery in output is continuing thanks to strong exports," a spokesman at the Japan Iron and Steel Federation said.

Crude steel output in December totalled 9.17 million tonnes, up 2.5 percent from a year earlier for a 14th consecutive year-to-year rise, the industry body said.

From the previous month, December output rose 2.1 percent due in part to an extra day compared with November, the industry body said. The figure is not seasonally adjusted.

October-December output came to 27.67 million tonnes, falling short of the trade ministry's forecast by 114,000 tonnes.

Japan's trade ministry warned last month that the level of domestic inventories was too high, and forecast that output in the January-March quarter will likely shrink to 26.88 million tonnes because companies are keen to cut inventories.

Domestic steel inventories in November decreased 233,000 tonnes to 4.996 million tonnes, falling below 5 million tonnes for the first time in four months, the Iron and Steel Federation said last month.

?