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 2015-16, posting a net profit of JPY 72.73 billion ($588 million), rising 50.5 percent year on year. In the given period, the company's net sales amounted to JPY 1.26 trillion ($10.2 billion), down 7.1 percent compared to the corresponding period of the previous year.
During the April-June period, NSSMC's steelmaking and steel fabrication segment recorded net sales of JPY 1.1 trillion ($8.9 billion), falling by nine percent year on year.
According to NSSMC, steel demand in Japan remained generally firm overall but decreased from the same period of the previous financial year due to inventory adjustments in the automobile sector and other factors. The company made production adjustments so as to respond to customers’ inventory adjustments and to target appropriate market inventory levels.
Regarding overseas steel demand conditions, NSSMC stated that China’s economic slowdown became more apparent and growth in steel demand continued to decelerate in other emerging countries. In international steel markets, a downtrend continued. In addition to a decline in raw materials, supply pressure from Chinese and South Korean steelmakers remained strong.
Meanwhile, in the given period, NSSMC produced 10.89 million mt of crude steel, down 8.2 percent, while the company's steel product shipments amounted to 9.85 million mt, falling 5.6 percent, both year on year.