The world's second biggest steelmaker Japan-based Nippon Steel & Sumitomo Metal Corp. (NSSMC) has announced its financial results for the first half ended September 30 of the financial year 2015-16, posting a net profit of JPY 120.11 billion ($994.75 million), rising seven percent year on year. In the given period, the company's net sales amounted to JPY 2.50 trillion ($20.70 billion), compared to the net sales of JPY 2.77 trillion in the same period of last year.
During the June-September period, NSSMC's steelmaking and steel fabrication segment recorded net sales of JPY 2.20 trillion ($18.22 billion), decreasing by 10.7 percent year on year. NSSMC stated that Japan’s steel market was supported by signs of pickup in demand for housing construction in the construction sector but was weak overall due to prolonged inventory adjustments in the automobile and other sectors.
Meanwhile, in the first half, NSSMC produced 22.27 million mt of crude steel, down 7.28 percent, while the company's steel product shipments amounted to 19.62 million mt, decreasing by 6.96 percent, both year on year.
NSSMC said that the global economy continued its moderate overall recovery supported by ongoing strong economic conditions in the United States and gradually improving conditions in Europe. However, the future outlook is increasingly uncertain as the economic slowdown in China has become more pronounced and the economic improvement in ASEAN countries has slowed.