In 2006, Japan’s domestic steel demand from manufacturers continued at a high level as in the previous year, led by such industries as motor vehicles, shipbuilding and industrial machinery.

In addition, demand from the construction sector remained firm, other than demand for products for use in public works. Meanwhile, exports increased after the previous year's drop, reflecting improvement in the supply-demand situation in Southeast Asian markets, which had been slackening since the second half of 2005.

As a consequence, crude steel production in 2006 rose 3.3% from the previous year, to 116.23 million tons, exceeding the 100 million-ton mark for the seventh straight year. On a calendar year basis, this was the third-largest tonnage on record, following the 119.32 million tons in 1973 and 117.13 million tons in 1974.

Since establishing its voluntary action program in 1996, the Japanese steel industry has made concerted efforts to save energy and promote recycling through a multifaceted approach. The steel industry, which is responsible for about 11% of the country's final energy consumption, achieved energy savings of about 20% in the 20 years following the two oil crises of the 1970s, maintaining the world's top level of energy efficiency. The industry is continuing these efforts as if sets an even more challenging voluntary action program target: an additional 10% energy savings by fiscal 2010.