JFE Steel further cuts full year loss forecast

Friday, 12 February 2021 15:24:20 (GMT+3)   |   Istanbul

Japanese steelmaker JFE Holdings Co. has announced its consolidated financial results for the first nine months ended December 31 of the financial year 2020-21.

In the first nine months, JFE Holdings recorded a net loss of JPY 67.21 billion ($9.56 billion), compared to a JPY 30.63 billion net profit recorded in the same period of the previous fiscal year. The company’s net sales amounted to JPY 2.32 trillion ($330 billion), down 16.9 percent year on year.

Meanwhile, in the first nine months, JFE Steel’s consolidated crude steel output decreased to 17.36 million mt, down by 17.6 percent year on year. The company’s shipments amounted to 14.76 million mt, down 15 percent year on year.

Due to a recovery in domestic and overseas steel demand, the company’s crude steel production in the full financial year is expected to be approximately 22.70 million mt compared to 22.50 million mt in the previous forecast. For the full financial year, the company expects iron ore prices to increase due to China’s active crude steel production, while coking coal prices are expected to increase, due to strong demand in regions other than China and seasonal factors.

For the full financial year, the company expects a loss of JPY 32 billion compared to JPY 90 billion in the previous forecast, due to a further recovery in steel demand and a significant rise in steel prices. It stated that domestic steel demand continues to recover due to recovery in activity levels of customers. Automobile production has already recovered to the same levels as the previous year. Demand from other manufacturers is also expected to recover gradually.

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