Demand for industrial materials is showing clear signs of recovery, with steel and cement production in 2013 in Japan hitting their highest levels in five years on the back of the building boom in disaster-struck regions and urban areas undergoing economic expansion.

Production of paper and ethylene, used for a wide range of chemical products, has also increased for the first time in three years.

The Japan Iron and Steel Federation said Thursday that the 2013 domestic production of crude steel grew 3.1 percent from the previous year to 110.57 million tons, the highest since 2008, when it was at 118.70 million tons before the impact of the global financial crisis kicked in.