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 2014-15, posting a net profit of JPY 112.25 billion ($1 billion), falling 2.9 percent year on year. In the first half, the company's net sales amounted to JPY 2.77 trillion ($24.8 billion), up 3.9 percent compared to the corresponding period of the previous year.
According to NSSMC, thanks to full-fledged reconstruction demand, recovering capital investment and other trends, steel demand in Japan was generally firm despite a dip in demand from the civil engineering and construction sectors, partly due to seasonal fluctuations in public works demand, and the impact of the consumption tax hike in some manufacturing industry segments.
During the June-September period, NSSMC's steelmaking and steel fabrication segment recorded net sales of JPY 2.47 trillion ($22.13 billion), increasing by 3.5 percent year on year. NSSMC stated that steel exports were generally solid on the back of a gradual recovery in the global economy, but international steel market conditions continued to require caution because of such factors as the continued high level of production output at Chinese steelmakers.
Meanwhile, in the given period, NSSMC produced 24.02 million mt of crude steel, down one percent, while the company's steel product shipments amounted to 21.11 million mt, increasing by 0.66 percent, both year on year.
NSSMC said that domestic steel demand may dip due to the consumption tax hike but is projected to remain generally firm supported by stable public investment and growing capital expenditure. With regard to exports, world steel demand should also remain basically solid on the back of the firm US economy. However, the ongoing high production output of Chinese steelmakers remains a concern in the international market, and the outlook is likely to remain unpredictable in areas including steel material supply and demand and market conditions in Asia.