The world's second biggest steelmaker Japan-based Nippon Steel & Sumitomo Metal Corp. (NSSMC) has announced its financial results for the first quarter ended June 30 of the financial year 2013-14, posting a net profit of JPY 63.4 billion ($647.94 million), compared to a net loss of JPY 87.53 billion in the previous financial year. In the given period, the company's net sales amounted to JPY 1.28 trillion ($13.08 billion), increasing by 34 percent year on year.
Meanwhile, in the first quarter of FY2013-14 NSSMC produced 12.13 million mt of crude steel, up 6.5 percent, while the company's steel product shipments amounted to 10.29 million mt, increasing slightly by 0.5 percent, both year on year.
According to NSSMC, during the first quarter, domestic steel demand was strong for civil engineering and construction projects supported by the emergence of reconstruction demand and the effects of economic policies. Export activity also started picking up due to a recovery in some foreign economies, particularly in the ASEAN region, and a correction in the value of the Japanese yen from its excessively high level. At the same time, the continued high level of production at Chinese
steelmakers led to deteriorating supply and demand conditions for steel materials in the international market
For the full financial year, the outlook remains uncertain for the European and Chinese economies, but NSSMC expects the Japanese economy to stay solid overall. Under these circumstances, the company plans to meet with customers to negotiate core raw material and product prices for the second half.