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 2016-17, posting a net profit of JPY 11 billion ($104.98 million), compared to the net profit of JPY 120.11 billion recorded in the same period of the previous financial year. In the given period, the company's net sales amounted to JPY 2.16 trillion ($20.6 billion), decreasing by 14 percent year on year.
During the June-September period, NSSMC's steelmaking and steel fabrication segment recorded net sales of JPY 1.90 trillion ($18.12 billion), decreasing by 13.6 percent year on year. NSSMC stated that in the given period domestic steel demand declined year-on-year as a result of a slow recovery in sales to the construction industry and depressed sales to manufacturers, particularly in the automotive sector. However, due to the recent increase in demand, mainly in the construction and automotive sectors, overall demand bottomed out in the first quarter and started to increase in the second quarter.
Meanwhile, in the first half of FY 2016-17, NSSMC produced 22.70 million mt of crude steel, up two percent, while its steel product shipments amounted to 19.68 million mt, remaining almost stable, both year on year.