UPDATE 1 — Japan October — to — December crude steel output forecast to rise 2.3% from a year earlier

(Adds details throughout) TOKYO, Oct 15 (Reuters) — Japan's crude steel output is expected to rise 2.3% from a year earlier in the October-to-December quarter, marking a third consecutive quarterly increase thanks to improved domestic demand, the government said on Thursday. Here are some details: • Output by Japan, the world's fourth-largest steel producer, is expected to total 20.67 million metric tons, a rise of 2.9% from the previous quarter, the Ministry of Economy, Trade and Industry said • Demand for steel products, including for exports, is projected to be flat from a year earlier at 18.49 million tons in the October-to-December period, the ministry said, citing an industry survey • Exports are expected to fall 2.4% amid high levels of steel exports from China and protectionism in various countries, the ministry said • "While the export environment remains extremely challenging, we are hearing some views that domestic demand has bottomed out in certain sectors," said Yoshiko Tsuwaki, director of METI's metal industries division • In construction, labour shortages continue to hamper small- and medium-sized projects, but demand is showing signs of recovery in urban redevelopm