Japan's new government led by Prime Minister, Junichiro Koizumi, has been busy drafting its brave action plan to renew the country's economy. New policy measures call for substantial reform of the economic system, and ask the population to bear the gain of low economic growth and increased unemployment for the next 2 to 3 years. Even before the real implementation of those policies, the Japanese steel market sees signs of weakness and deflation. Prices of steel products and steel scrap have fallen and orders are weak. Although all five big steel producers succeeded in recording some operation profit in fiscal 2000, their prospects for business performance in fiscal 2001 are very dark and they also have to prepare to bear the pain caused both by economic reform and increased competition from inside the industry.
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