Domestic demand for crude steel will probably rise to an almost 35-year high, led by shipbuilders and machinery makers, the Ministry of Economy, Trade and Industry said.
Total steel demand will jump 2.2 percent in the three months ending September to 30.56 million tons, the highest for any quarter since December 1973, the ministry said.
Rising demand is allowing Nippon Steel Corp., the nation's biggest maker, and rivals to raise product prices to offset soaring material costs. Coking coal has tripled this fiscal year, manganese has risen four-fold and iron ore has jumped as much as 71 percent, prompting two of Japan's three biggest mills to forecast a decline in annual profit.