Nippon Steel's Challenges Amid Global Steel Market Shifts

Japan's Nippon Steel reported an 18% decline in nine-month net profit due to weak global steel demand. Its acquisition of U.S. Steel was blocked by former President Biden, leading to lawsuits. Nippon Steel maintains its annual profit forecast and plans to sell shares in Kobe Steel.

Nippon Steel, Japan's leading steelmaker, announced an 18% decrease in nine-month net profit, amounting to 362 billion yen ($2.4 billion), attributing the decline to waning steel demand both domestically and internationally.

The company's attempt to acquire U.S. Steel faced a significant hurdle when it was blocked by the then U.S. President Joe Biden. In response, Nippon Steel, joined by U.S. Steel, has initiated several lawsuits contesting this decision. Despite these setbacks, Nippon Steel has kept its net profit projection for the fiscal year ending March steady at 310 billion yen.

Nippon Steel highlighted the exacerbation of global spread weakness due to increased exports and a structural supply/demand imbalance in China, forecasting no immediate recovery in demand and margins globally. Additionally, Nippon Steel announced its intention to offload all shares in Kobe Steel, with Kobe Steel planning a reciprocal sale.

(With inputs from agencies.)