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JFE Warns of Losses amid COVID19 Slump

Steel News - Published on Thu, 13 Aug 2020

Image Source: JFE Steel
Reuters reported that Japan’s second biggest steelmaker JFE Holdings has warned of a net loss of JPY 100 billion yen (USD 937 million) in the year to March 2021, its second consecutive year of loss, as the COVID-19 pandemic choked off steel demand. JFE Holdings President Koji Kakigi said the company may speed up restructuring steps unveiled in March, including the closure of a blast furnace in its Keihin plant, near Tokyo, to cope with slumping demand. He said “We plan to accelerate our restructuring steps, with an assumption that the coronavirus impact will stay for a while.”

JFE said in March it would cut steel capacity by 13% by shutting a blast furnace by March 2024. It forecast an annual crude steel output of 22 million tonnes for this year, against 26.73 million tonnes a year earlier.

In May, JFE booked a record net loss of JPY 198 billion yen for the year ended in March. For the April-June quarter, JFE posted a net loss of JPY 39 billion as its crude steel output tanked to 4.79 million tonnes on a parent basis from 7 million tonnes a year earlier as it temporarily suspended two blast furnaces in western Japan.

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Posted By : Yogender Pancholi on Thu, 13 Aug 2020
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