Nippon Steel Vice Chairman Takahiro Mori has stated that strong demand and tariff protection in the US steel market could enable US Steel to outperform its current earnings forecasts, according to a Reuters report.
Mori said he expects US Steel to generate more than JPY 100 billion ($619.93 million) in profit this year and indicated that favorable market conditions through 2027 could provide additional upside. Over the longer term, he said the company could achieve annual profits of JPY 300-400 billion.
Strong steel prices support outlook
According to Mori, market conditions in the US remain highly favorable, with hot-rolled coil prices staying above $1,200/mt, more than double prevailing levels in Asia. To capitalize on the strong pricing environment, US Steel restarted an idled blast furnace in Illinois in March and is currently operating the facility at full capacity.
He added that US Steel’s board has already approved around one-third of the $11 billion investment program pledged by Nippon Steel through 2028. According to Mori, returns from these investments are expected to rise to approximately $3 billion annually by 2035.
Global expansion remains a priority
While acknowledging potential challenges including inflation-related cost pressures and labor shortages, Mori said the US government has not intervened in management decisions despite retaining a golden share in the company. Looking beyond the US, he stated that Nippon Steel will continue pursuing overseas growth opportunities despite increasing protectionism and geopolitical uncertainty. The company’s international expansion strategy remains focused on the United States, India, Thailand and Europe.
Mori added that Nippon Steel aims to increase overseas profit to more than JPY 500 billion by 2030, nearly five times the level recorded in fiscal year 2025. He also noted that global structural changes have increased the importance of maintaining strong relationships with policymakers and aligning overseas investments with national industrial strategies.
