In December 2012, Japan's industrial production increased 2.5 percent from the previous month, showing a month-on-month increase after two months of downward movement, while a decrease of 7.8 percent was recorded compared to December of the previous year, according to the preliminary indices of the Industrial Production report published by Japan's Ministry of Economy, Trade and Industry.

According to the report, the Japanese seasonally adjusted iron and steel production index in the month in question increased by 2.2 percent month on month. Japan's original iron and steel production index in December last year fell by 3.3 percent year on year. Meanwhile, in December Japanese producers' iron and steel shipments rose by 3.2 percent, while their iron and steel inventories were down by 1.2 percent, both compared to the previous month.

On the other hand, according to the ministry's preliminary Current Survey of Production report, in December last year Japan produced 6.7 million mt of pig iron, up 2.1 percent, 80,000 mt of ferroalloys, up 10.8 percent, 8.6 million mt of crude steel, up 0.8 percent, and 8.4 million mt of semi-finished steel, up 1.3 percent, all compared to November last year.

According to the ministry's Survey of Production Forecast in Manufacturing, Japanese industrial production is expected to increase by 2.6 percent in January and by 2.2 percent in February, both month on month.