Reuters reported that Kobe Steel Limited crude steel output hit a 6 year peak in the business year just ended and that production this year would be similar due to robust domestic demand.

The rise is in line with overall Japanese crude steel output, which marked its highest level in six years in the 2013 to 2014 year that ended March 31. It was boosted by strong construction and automobile demand as Prime Minister Shinzo Abe pushed to revitalise the nation's economy with infrastructure investments and monetary easing.

Mr Naoto Umehara executive officer of Kobe Steel said that the company's crude steel output rose 8.6% YoY in 2013 to 2014 to 7.62 million tonnes the highest since 2007 to 2008. It plans to produce 7.65 million tonnes this year.

Mr Umehara said that "Demand for automobile steel is expected to remain as sound as last business year and demand from ship builders will likely pick up. Construction demand will also stay strong thanks to government stimulus and rebuilding work in the northeast region (hit by the earthquake and tsunami in 2011)."