Japan-based Nippon Steel Corporation has announced its financial results for the first half ended September 30 of the financial year 2020-21. In the given period, Nippon Steel recorded a net loss of JPY 188.24 billion ($1.82 billion), compared to a net profit of JPY 49.44 billion in the same half of the previous year, while the company’s net sales amounted to JPY 2.24 trillion ($21.71 billion), decreasing by 26.4 percent compared to net sales of JPY 3.05 trillion in the first half of the previous financial year, due to lower demand due to the coronavirus.
Meanwhile, in the first half of the given financial year, Nippon Steel produced 14.64 million mt of crude steel, down 32 percent, while its steel product shipments amounted to 14.46 million mt, decreasing by 27.1 percent, both year on year. The company expects its crude steel production to increase to approximately 18.10 million mt in the second half of the year.
The company reduced the production at its blast furnaces amid the sharp decline of steel demand due to the coronavirus in the first half, but plans to restart some blast furnaces if demand recovers in the second half this year.
Nippon steel expects demand to increase in the second half but still to be at a lower level compared to the pre-pandemic period. The company expects a loss of JPY 170 billion for the fiscal year ending March 31, 2021. It stated that it will rebuild its profit structure and improve its financial status as soon as possible, and return profit to shareholders.