Japanese steelmakers increase profit forecasts

Major Japanese steelmakers raised their earnings forecasts for the fiscal year ending next March because of brisk demand for high-end steel and a sustained rise in selling prices. Nippon Steel now expects to post net profit of Yen 300 billion ($2.58 billion) on revenue of Yen 4.1 trillion ($35.3 billion) for this fiscal year, having previously forecast a net profit of Yen 280 billion ($2.4 billion) on revenue of Yen 4 trillion ($34.4 billion). "In Japan, steel demand has been brisk, thanks to high levels of housing starts and plant construction, while in the export market, demand for high-end products has also been strong, especially in the East Asian area," Nippon Steel executive vice-president Nobuyoshi Fujiwara said. JFE Holding said it now expects to earn a net profit of Yen 280 billion ($ 2.4 billion) on revenue of Yen 3.16 trillion ($27.2 billion) for this fiscal year, having previously forecast net profit of Yen 270 billion ($2.3 billion) on revenue of Yen 3.12 trillion ($26.8 billion). "A better-than-expected improvement in the export market more than offset the adverse impact of rising procurement costs, allowing us to beat the profit target originally set," JFE Holding executive vice-president Toshikuni Yamazaki said.