TOKYO (Reuters) – Japan’s second-biggest steelmaker JFE Holdings Inc plans to post a 17% increase in current fiscal year’s net profit to 190 billion yen ($1.4 billion), expecting stronger steel demand thanks to recovery in auto sector, it said on Monday.
JFE saw a 44% decline in 2022/23 fiscal year net profit to 162.6 billion yen as its crude steel output fell to 25.5 million tonnes from 27.3 million tonnes a year before hit by weaker demand both in Japan and abroad amid rising costs and A shortage of semiconductors essential to the auto sector.
The average selling price increased to 130,800 yen per tonne, up from 103,700 yen a year earlier, the company said.
This year, JFE said it sees improving demand for steel products in Japan thanks to a recovery in the automotive sector as supplies of semiconductors and other components improve.
Overseas demand should be driven by China lifting its zero-COVID policy, it said.
As a result, 2023/24 fiscal year’s net profit should rise by 17% to 190 billion yen, JFE forecast on Monday.
($1 = 134.9200 yen)
(Reporting by Katya Golubkova, Editing by Louise Heavens)
