UPDATE 1-Nippon Steel to ease output cut- Nikkei

May 28 (Reuters) - Nippon Steel Corp (5401.T) plans to lift its overall capacity utilization rate as early as July on expectations of a recovery in demand from automakers and others, the Nikkei business daily reported, without citing any sources.

The newspaper said Nippon Steel plans to increase its capacity utilization rate to 60 percent to 70 percent from the current 50 percent level.

Other steelmakers, such as JFE Steel Corp and Kobe Steel Ltd (5406.T) may also ease production cuts, because Toyota Motor Corp (7203.T) and other automakers are expected to complete inventory adjustment efforts this summer and have started moving toward raising production, the Nikkei said.

The newspaper said Nippon Steel is looking to boost facility utilization rates to 70 percent to 80 percent in July or later at some of its steelworks, including the Nagoya mill in Aichi Prefecture and the Yawata mill in Fukuoka Prefecture, which cater largely to automaker demand.

If the company raises output in July, it would mark the first uptick in roughly 10 months, the daily said. (Reporting by Ashutosh Joshi in Bangalore; Editing by Aradhana Aravindan)