Japanese steelmaker Kobe Steel Ltd (Kobe) has posted a net income of JPY 44.17 billion ($452.97 million) in the first half of the current fiscal year which began on April 1, 2013, compared to a net loss of JPY 38.20 billion in the corresponding period of the previous financial year. The company's consolidated net sales revenues for the first half of FY 2013-14 were JPY 889.33 billion ($9.12 billion), up 3.6 percent year on year, partly due to an improvement in the export environment amid a correction of the strength of the yen, enabling Kobe Steel to steadily address overseas demand.
According to Kobe Steel, steel demand has been recovering in the Japanese domestic automotive sector, and the export environment improved owing to a strong performance overseas, mainly in the US, and a correction in the strength of the yen, enabling Kobe Steel to address overseas demand. Although Kobe Steel said it was able to raise its sales prices - which were affected by exchange rate fluctuations and higher raw material costs - to a certain extent after gaining the understanding of customers, steel prices were still lower compared to the same period last year.
According to Kobe Steel's forecast for the third quarter of the current Japanese fiscal year and beyond, although demand for steel products is anticipated to remain strong, mainly in the automotive sector, the oversupply situation is anticipated to remain unchanged. The business environment is anticipated to be unpredictable and developments in the domestic and overseas markets must be closely monitored. For steel castings and forgings, shipbuilding demand is expected to remain sluggish.