Japanese steelmaker JFE Holdings has recorded a net profit of JPY 85 billion (USD 639 million) in April-June 2022 quarter as compared to a JPY 63 billion net profit recorded in the same period of the previous fiscal year. The increase in profit was due to higher steel prices, offsetting the depreciation of the Japanese yen. The company’s net sales amounted to JPY 1.25 trillion (USD 9.41 billion), up 41% YoY. JFE Steel’s consolidated crude steel output increased to 6.77 million tonnes, up by 3% YoY while shipments i amounted to 5.54 million tonnes up 5% YoY.JFE said “In Japan, downward pressure has been placed on the economy by factors such as continued supply constraints on parts for automobile production, etc., soaring prices for resources and energy, and rising import prices due to a rapid depreciation of the yen. Overseas, demand for steel products is weakening due to China's zero COVID policy and uncertainty about the global economy in the face of Russia's invasion of Ukraine. Toward the latter half of the fiscal year, however, both domestic and overseas demand for steel products are expected to recover moderately as economies rebound from Covid and the Chinese government rolls out anticipated economic-stimulus measures. JFE Steel's non-consolidated crude steel production is expected to be slightly less than 26 million tonnes for the full year. Segment income for the full year is expected to come to JPY 150 billion, lower than in the previous year due to negative factors such as foreign exchange effects reflecting the yen's sharp depreciation and inventory valuation differences. Concurrently, however, the company will continue to implement measures aimed at improving profitability, mainly by strengthening domestic sales prices.”
Japanese steelmaker JFE Holdings has recorded a net profit of JPY 85 billion (USD 639 million) in April-June 2022 quarter as compared to a JPY 63 billion net profit recorded in the same period of the previous fiscal year. The increase in profit was due to higher steel prices, offsetting the depreciation of the Japanese yen. The company’s net sales amounted to JPY 1.25 trillion (USD 9.41 billion), up 41% YoY. JFE Steel’s consolidated crude steel output increased to 6.77 million tonnes, up by 3% YoY while shipments i amounted to 5.54 million tonnes up 5% YoY.JFE said “In Japan, downward pressure has been placed on the economy by factors such as continued supply constraints on parts for automobile production, etc., soaring prices for resources and energy, and rising import prices due to a rapid depreciation of the yen. Overseas, demand for steel products is weakening due to China's zero COVID policy and uncertainty about the global economy in the face of Russia's invasion of Ukraine. Toward the latter half of the fiscal year, however, both domestic and overseas demand for steel products are expected to recover moderately as economies rebound from Covid and the Chinese government rolls out anticipated economic-stimulus measures. JFE Steel's non-consolidated crude steel production is expected to be slightly less than 26 million tonnes for the full year. Segment income for the full year is expected to come to JPY 150 billion, lower than in the previous year due to negative factors such as foreign exchange effects reflecting the yen's sharp depreciation and inventory valuation differences. Concurrently, however, the company will continue to implement measures aimed at improving profitability, mainly by strengthening domestic sales prices.”
