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

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Japan's JFE Holdings sees 2023/24 profit up on auto sector recovery
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TOKYO : Japan's second-biggest steelmaker JFE Holdings Inc plans to post a 17 per cent 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 per cent decline in 2022/23 fiscal year

TOKYO : Japan's second-biggest steelmaker JFE Holdings Inc plans to post a 17 per cent increase in current fiscal year's net profit to 190 billion yen , expecting stronger steel demand thanks to recovery in auto sector, it said on Monday.

JFE saw a 44 per cent 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 per cent to 190 billion yen, JFE forecast on Monday.

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