Japanese steelmaker JFE Holdings Co. has announced its consolidated financial results for the first quarter ended June 30 of the financial year 2020-21.
In the first quarter, JFE Holdings recorded a net loss of JPY 38.74 billion ($362.2 million), when compared to a JPY 20.7 billion net profit recorded in the same period of the previous fiscal year. The company's net sales amounted to JPY 743.9 billion ($6.95 billion), down 19.8 percent year on year. For the full financial year, the company expects a net loss of JPY 100 billion, due to reduced demand outlooks in the company’s respective industries as a result of the coronavirus.
Meanwhile, in the first quarter, JFE Steel’s consolidated crude steel output decreased to 5.09 million mt, down by 30.8 percent year on year. The company’s shipments amounted to 4.59 million mt, down 21.5 percent year on year.
JFE Steel said that domestic demand for steel products hit a low point between April and June, but is expected to recover gradually between July and September, and in the second half. Demand in the automotive sector will likely recover and the demand for steel products in the civil engineering sector is also expected to increase due to seasonal and other factors. Although the outlook has become more uncertain due to Covid-19 and heightened tensions between the United States and China, a gradual recovery is forecast for the second half due to expectations of a recovery in the Chinese economy and a bottoming out of automobile sales both in Europe and the United States.
JFE Steel estimates its crude steel output on a consolidated basis will amount to approximately 10.6 million mt in the first half due to a sharp decrease in production, but the company forecasts output rising to approximately 12 million mt in the second half due to recovered demand.