The world's second biggest steelmaker Japan-based Nippon Steel & Sumitomo Metal Corp. (NSSMC) has announced its financial results for the first half ended September 30 of the financial year 2013-14, posting a net profit of JPY 115.6 billion ($1.18 billion), compared to a net loss of JPY 176.66 billion in the same period of the previous financial year. In the first half of the current financial year, the company's net sales amounted to JPY 2.67 trillion ($27.2 billion), increasing by 39 percent year on year.
According to NSSMC, during the term under review, domestic steel demand was supported by sustained strong demand for civil engineering and construction projects, underpinned by ongoing reconstruction demand and the effects of economic policies. Demand from the manufacturing industry also increased due to the recovery in capital investment, improving business confidence, and other factors. While steel exports showed some signs of recovery, global prices remained sluggish due to the ongoing stagnant demand for steel materials caused by persistent strong supply pressure from Chinese steelmakers. During the first half, NSSMC's steelmaking and steel fabrication segment recorded net sales of JPY 2.4 trillion ($24.44 billion), up 46.6 percent year on year.
Meanwhile, in the given period, NSSMC produced 24.27 million mt of crude steel, up four percent, while the company's steel product shipments amounted to 20.97 million mt, increasing by 1.75 percent, both year on year.