Crude steel output totalled 9.11 million tonnes in July, down 0.8 percent on a daily production basis from June after adjustment for the number of days in the month, the Japan Iron and Steel Federation said on Friday.

From a year earlier, output fell 1.2 percent for a fifth consecutive year-on-year fall. That was an improvement, however, from a 5 percent drop in June, a 7 percent slide in May and a 6 percent drop in April, after the devastating earthquake on March 11.

"We expect steel demand to further increase in the coming months thanks to higher output at carmakers, but the strong yen is worrying," an industry official said.

Exports of Japanese steel products plunged 9.3 percent from a year earlier to 3.5 million tonnes in June. That was a fourth consecutive year-on-year decline.

Copyright Reuters, 2011