JFE Steel expects lower loss for full year

Monday, 09 November 2020 18:16:55 (GMT+3)   |   Istanbul

Japanese steelmaker JFE Holdings Co. has announced its consolidated financial results for the first half ended September 30 of the financial year 2020-21.

In the first half, JFE Holdings recorded a net loss of JPY 104.52 billion ($1 billion), compared to a JPY 34.18 billion net profit recorded in the same period of the previous fiscal year. The company’s net sales amounted to JPY 1.49 trillion ($14.41 billion), down 20.3 percent year on year.

Meanwhile, in the first half, JFE Steel’s consolidated crude steel output decreased to 10.77 million mt, down by 25.7 percent year on year. The company’s shipments amounted to 9.34 million mt, down 20.8 percent year on year.

Due to a recovery in demand, particularly from the automobile sector, and resumption of operation of blast furnace No. 4 at the Fukuyama plant, the company’s crude steel production in the full financial year is expected to be approximately 22.50 million mt. For the second half this year, the company expects iron ore prices to remain high due to China’s strong demand, while coking coal prices are expected to increase.

For the full financial year, the company expects a loss of JPY 90 billion compared to JPY 100 billion in the previous forecast, due to the impact of the coronavirus pandemic. It stated that domestic steel demand is expected to gradually recover in the second half by bottoming out from April-June due to a recovery in the activity level of the manufacturing industry, mainly the automobile industry.

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