Japan’s second largest steel maker JFE Holdings Co has announced its consolidated financial results for the first half ended September 30 of the financial year 2021-22. In the first half, JFE Holdings recorded a net profit of JPY 143.32 billion (USD 1.26 billion), compared to a JPY 104.52 billion net loss recorded in the same period of the previous fiscal year. The increase in profit was due to strong steel demand and prices amid continuous recovery of the global economy since the second half of the previous financial year. The company’s net sales amounted to JPY 1.94 trillion (USD 17.10 billion), up 30.2% YoY. In the first half, JFE Steel's consolidated crude steel output increased to 13.39 million tonnes, up by 24% YoY. The company’s shipments amounted to 10.83 million tonnes up 16% YoY.Due to a recovery in domestic and overseas steel demand, the company's crude steel production in the full financial year is expected to be approximately 26.50 million tonnes. The company stated that its Kurashiki blast furnace No 4 will resume operations in mid-December.Domestic steel demand is expected to be strong particularly in manufacturing industry. Outlook for domestic ordinary steel consumption in Q3 of FY2021 increases by 1.0% YoY and by 4.6% from the previous quarter. Annual auto production is expected to be approx. 8.2 million units, decreased by 1 million units from our previous forecast, due to the supply shortage of parts and semi-conductors. Orders for new ships are increasing along with the increase in both cargo movement and chartering market amid the recovery of global economy. Demand for construction equipment used for infrastructure and housing stays strong. Industrial machinery also remains strong due to the increasing CAPEX in industries such as semiconductors and EV. Steel demand in public sector remains strong and is expected to be on par with the previous fiscal year.Business Environment Overseas - Steel demand is mostly expected to remain in a recovery trend along with the recovery of the global economy. Supply-demand balance is expected to remain tight as long as the Chinese government's control of crude steel production and steel exports will continue. Re-spread of COVIP-19 in Southeast Asia and emerging countries and shortage of semiconductors and parts need to be monitored carefully.China - Steel exports from China are likely to decline due to China's policy of production cut and export reduction. Both steel production cuts and an increase in raw material cost make the steel price in China remain resilient.India - Although there are some the steel exports to Asian countries, the domestic demand is expected to recover owing to peeking out of COVID-19 and the coming peak period of steel demand. Export prices are expected to remain high as coking coal prices soarRussia - Russian mills are exporting steel at lower prices in various places since the sales volume declines in Europe and auto production decreases in Europe and Turkey. Their exports will be back to Europe and Turkey along with the recovery of auto production. Export prices are expected to increase as the overseas mills offer higher pricesFull-year business profit is expected to be 360.0 billion yen, increased by 372.9 billion yen YoY due to recovery of steel demand and market price increase amid improved global economic trends
Japan’s second largest steel maker JFE Holdings Co has announced its consolidated financial results for the first half ended September 30 of the financial year 2021-22. In the first half, JFE Holdings recorded a net profit of JPY 143.32 billion (USD 1.26 billion), compared to a JPY 104.52 billion net loss recorded in the same period of the previous fiscal year. The increase in profit was due to strong steel demand and prices amid continuous recovery of the global economy since the second half of the previous financial year. The company’s net sales amounted to JPY 1.94 trillion (USD 17.10 billion), up 30.2% YoY. In the first half, JFE Steel's consolidated crude steel output increased to 13.39 million tonnes, up by 24% YoY. The company’s shipments amounted to 10.83 million tonnes up 16% YoY.Due to a recovery in domestic and overseas steel demand, the company's crude steel production in the full financial year is expected to be approximately 26.50 million tonnes. The company stated that its Kurashiki blast furnace No 4 will resume operations in mid-December.Domestic steel demand is expected to be strong particularly in manufacturing industry. Outlook for domestic ordinary steel consumption in Q3 of FY2021 increases by 1.0% YoY and by 4.6% from the previous quarter. Annual auto production is expected to be approx. 8.2 million units, decreased by 1 million units from our previous forecast, due to the supply shortage of parts and semi-conductors. Orders for new ships are increasing along with the increase in both cargo movement and chartering market amid the recovery of global economy. Demand for construction equipment used for infrastructure and housing stays strong. Industrial machinery also remains strong due to the increasing CAPEX in industries such as semiconductors and EV. Steel demand in public sector remains strong and is expected to be on par with the previous fiscal year.Business Environment Overseas - Steel demand is mostly expected to remain in a recovery trend along with the recovery of the global economy. Supply-demand balance is expected to remain tight as long as the Chinese government's control of crude steel production and steel exports will continue. Re-spread of COVIP-19 in Southeast Asia and emerging countries and shortage of semiconductors and parts need to be monitored carefully.China - Steel exports from China are likely to decline due to China's policy of production cut and export reduction. Both steel production cuts and an increase in raw material cost make the steel price in China remain resilient.India - Although there are some the steel exports to Asian countries, the domestic demand is expected to recover owing to peeking out of COVID-19 and the coming peak period of steel demand. Export prices are expected to remain high as coking coal prices soarRussia - Russian mills are exporting steel at lower prices in various places since the sales volume declines in Europe and auto production decreases in Europe and Turkey. Their exports will be back to Europe and Turkey along with the recovery of auto production. Export prices are expected to increase as the overseas mills offer higher pricesFull-year business profit is expected to be 360.0 billion yen, increased by 372.9 billion yen YoY due to recovery of steel demand and market price increase amid improved global economic trends
