off-the-wire

Japan's JFE Holdings sees 2023/24 profit up on auto sector recovery

Kitco Media
By Reuters
Published:
Updated:
Reuters
TOKYO, May 8 (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)

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