Japanese steel producers increase profit forecasts

Japanese steel producers increase profit forecasts

Japanese steel producers JFE Steel and Nippon Steel Corp (NSC) increased their full-year profit forecasts due to price hikes implemented as a result of surging demand from China. NSC increased its profit forecast for the twelve-month period ending on March 31, 2005, by 5% to Yen 200 billion ($1.91 billion). JFE Steel raised its profit forecast by 7.1% to Yen 150 billion. Many Japanese producers chose to increase their prices in order to pass on higher raw material costs to their customers following the boom in Chinese demand.