(Recasts with background, comment)

TOKYO, Feb 18 (Reuters) - Japan’s crude steel production slid by a record 37.8 percent in January from a year earlier as the deepening global economic slump sapped demand for cars and other products.

Output came to a mere 6.37 million tonnes, the lowest since February 1969, the Japan Iron and Steel Federation said on Wednesday. It was the fourth straight month of falls.

“Demand for cars and all other products fell sharply during the month. Exports also declined,” a spokesman for the federation said. He added that the group expects the dismal figures to continue for a while.

Nippon Steel Corp, the world’s No. 2 steelmaker, plans to cut output in the January-March quarter by 40 percent to a record low 5 million tonnes as customers like Toyota Motor Corp and Honda Motor Co suffer amid the spreading recession.

Nippon Steel will idle one blast furnace from Feb.1 and another at a later date.

JFE Holdings Inc, the world’s third-biggest steelmaker, has shuttered a blast furnace since Jan. 14 to cut back on output.

Nippon Steel, however, expects to restart the two blast furnaces later this year, as it thinks automakers will see inventories return to appropriate levels by June and start increasing output by around July at the latest. (Reporting by Yuko Inoue; Editing by Edwina Gibbs)