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Top 3 Japan Steel Makers Cut Annual Profit Forecast

Steel News - Published on Wed, 13 Nov 2019

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The top three Japanese steelmakers reduced their annual profit forecasts for the year to March 31. Japan’s top steelmaker, Nippon Steel, slashed its business profit estimate by 33% to JPY 100 billion, Japan’s No 2 steelmaker JFE Holdings, lowered its annual business profit forecast by 57% to JPY 60 billion and , Japan’s No 3 steelmaker Kobe Steel revised down its full-year estimate to a net loss of JPY 5 billion from its earlier projection of a profit of JPY 10 billion. They are hit by slumping steel prices in Asia eroding their export margins, slower auto demand overseas and falling usage in machinery at home. They are also suffering from a softening global economy hit by the US China trade row.

Nippon Steel Executive Vice President Mr Katsuhiro Miyamoto said “Steel margins have been squeezed amid tumbling Asian markets. Higher procurement costs and slowing exports by its Japanese manufacturing customers also hit profit. The global economy is weak and auto sales across the world are falling. We don’t see any signs of recovery in overseas steel markets. It’s a tough situation.”

On Tuesday, JFE Holdings, Japan’s No.2 steelmaker, lowered its annual business profit forecast by 57% to 60 billion yen as profit from its steel segment will fall to zero, the lowest since the company was established in 2002.

JFE Executive Vice President Mr Masashi Terahata said “The economies of ASEAN, India and Europe are slowing amid the US China trade row while overseas steel prices are slipping due to fierce competition. Domestic demand also slowed, especially in industrial and construction machinery, and even in construction.”

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Posted By : Amom Remju on Wed, 13 Nov 2019
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