Japanese steel maker Nippon Steel Corporation has announced its financial results for the first nine months ended December 31 of the financial year 2020-21. Nippon Steel recorded a net loss of JPY 116.48 billion (USD 1.10 billion), compared to a net loss of JPY 351.56 billion in the same period of the previous year, while the company's net sales amounted to JPY 3.45 trillion decreasing by 22.9% compared to net sales of JPY 4.47 trillion in the first nine months of the previous financial year. Nippon Steel said that higher export prices and recovering demand from automakers and other manufacturers led to a sharp rebound in steel earnings.
The company's quarterly steel output recovered to 8.5 million tonne during October-December 2020 after falling below the January-March 2009 low of 7.7 million tonne during the global financial crisis for two straight quarters because of the impact of Covid-19.
Steel demand rapidly decreased in H1 of FY20 due to COVID-19 impacts, but is recovering beyond expectation in H2 of FY20. Demand from manufacturing sector had been declining since FY2019 mainly in indirect exports, and the decline gathered speed due to COVID-19 impacts in H1 of FY20. It is expected to recover toward the H2 mainly in automotive sector except for shipbuilding sector. Construction stagnation due to COVID-19 impacts is limited. While demand is expected to increase in civil engineering sector, demand in construction sector is expected to decrease in H2.
To cope with collapsing demand amid the COVID-19 pandemic early last year, Nippon Steel temporarily shut six blast furnaces, slashing capacity by 32%, but the recent resumption of three furnaces sent the figure to 13%.
1. Muronra 2BF 2,902 cubic meters, Suspension Jul 8, Refurbishment, restarted Nov 22
2. East Nippon Kashima 1BF 5,370 cubic meters, Banking Apr 15, Restarted Jan 19
3. East Nippon Kashima 3BF 5,370 cubic meters
4. East Nippon Kimitsu 2BF 4,500 cubic meters, Banking Jun 14, Restarted Nov 24
5. East Nippon Kimitsu 4BF 5,555 cubic meters
6. Nagoya 1BF 5,443 cubic meters
7. Nagoya 3BF 4,300 cubic meters
8. Kansai Wakayama 1BF 3,700 cubic meters, Banking Apr 25th, On going, Shutdown at the end of 1H of 2022 Planned
9. Kansai Wakayama 2BF 3,700 cubic meters
10. Setouchi Kure 1BF 2,650 cubic meters
11. Setouchi Kure 2BF 2,080 cubic meters, Banking since Feb 25, 2019, On going, Shutdown at the end of H1 of 2021 Planned
12. Kyushu Yawata 4BF 5,000 cubic meters
13. Kyushu (Kokura) 2BF 2,150 cubic meters, Banking Jul 18th, Shut down in Sep 2020
14. Kyushu Oita 1BF 5,775 cubic meters
15. Kyushu Oita 2BF 5,775 cubic meters
1) 15 BFs 64,270 cubic meters
2) Jul 8 - Nov 22 9 BFs 43,568 cubic meters
3) Jan 19 - 12 BFs 56,340 cubic meters
4) H1 of 2022 11 BFs 53,690 cubic meters
Its annual crude steel output is now estimated at 33.2 million tonnes, up from its earlier plan of 32.7 million tonnes, though the latest figure still represents a 21% drop year on year.