Global Steel Oversupply and Declines in Steel Prices and Sales Volumes

「Consolidated crude steel production for the fiscal year decreased year on year to 22.55 million tonnes amid weak domestic and overseas demand and overseas steel market conditions, as well as the impact of protectionist policies in the United States and other countries.」

「In the steel business, revenue was ¥1,537.4 billion, down ¥191.9 billion (11.1%) from the previous interim consolidated accounting period, due mainly to falling steel product prices and the foreign exchange impact of a stronger yen. Segment profit declined by ¥39.8 billion, resulting in a loss of ¥5.3 billion.」

「Business profit and profit for the year attributable to owners of the parent both declined from the previous fiscal year due to sluggish domestic demand and increased low-priced exports from China to neighboring countries.」

「In the steel business, revenue was ¥1,729.3 billion, down ¥136.5 billion (7.3%) from the previous interim consolidated accounting period, due mainly to lower sales volumes and weaker overseas steel market conditions, despite efforts to continuously improve selling prices and reduce costs. Segment profit was ¥34.5 billion, down ¥88.3 billion from the previous interim consolidated accounting period.」

「Consolidated crude steel production for the fiscal year decreased year on year to 24.80 million tonnes, against a backdrop of weak demand for steel products in Japan and overseas and sluggish overseas steel market conditions.」

「During the first nine months of the fiscal year, the Japanese and overseas economies generally recovered gradually, although some regions remained stagnant. Looking ahead, there are concerns about the impact of factors including downside risks to the domestic economy from weakness in overseas economies, such as global monetary tightening and stagnation in the Chinese economy, as well as rising prices, foreign exchange fluctuations and growing geopolitical risks.」

「During the first six months of the fiscal year, the Japanese and overseas economies generally recovered gradually, although some regions remained stagnant. Looking ahead, there are concerns about the impact of factors including downside risks to the domestic economy from weakness in overseas economies, such as global monetary tightening and stagnation in the Chinese economy, as well as rising prices and foreign exchange fluctuations.」

「In the steel business, revenue decreased by ¥15.4 billion, or 1.6%, year on year to ¥917.2 billion, due to lower sales volume and deteriorating overseas market conditions.」

「Despite weak demand for steel products in Japan and overseas, particularly weak steel market conditions in the second half, the Group maintained its focus on pricing, resulting in consolidated crude steel production of 25.48 million tonnes for the fiscal year, down from the previous fiscal year.」

「In the steel business, revenue increased by ¥662.7 billion, or 29.5%, year on year to ¥2,905.9 billion, due to initiatives to improve selling prices and the effects of yen depreciation, among other factors.」

「In the steel business, revenue increased by ¥508.5 billion, or 36.1%, year on year to ¥1,918.9 billion, due to initiatives to improve selling prices and other factors, including higher steel market prices.」

「In the steel business, revenue increased by ¥294.1 billion, or 46.1%, year on year to ¥932.6 billion, due to initiatives to improve selling prices, higher steel market prices and increased sales volume.」

「Consolidated crude steel production for the fiscal year increased substantially year on year to 27.26 million tonnes, driven by the recovery in demand for steel products against a backdrop of economic recovery.」

「In the steel business, revenue increased by ¥635.7 billion, or 39.5%, year on year to ¥2,243.2 billion, due to higher selling prices accompanying improved export market conditions and increased sales volume resulting from the recovery in demand in the automotive sector and other factors.」

「In the steel business, revenue increased by ¥383.2 billion, or 37.3%, year on year to ¥1,410.4 billion, due to higher selling prices accompanying improved export market conditions and increased sales volume resulting from the recovery in demand in the automotive sector and other factors.」

「In the steel business, revenue increased by ¥129.8 billion, or 25.5%, year on year to ¥638.5 billion, reflecting a substantial recovery in sales volume, which had declined due to the impact of COVID-19, and higher selling prices.」

「Trends in domestic and overseas supply and demand for steel products, against the backdrop of a shrinking domestic market due to the declining birthrate and aging population and economic conditions in Japan, Asia, and the rest of the world, could affect the sales volumes and prices of the group's steel products.」

「Although the segment returned to profitability in the third quarter alone due to a recovery in demand and crude steel production, as well as improved selling prices resulting from better export market conditions, the impact of deteriorating profitability caused by lower sales volumes in the first half was significant. As a result, the segment recorded a loss of ¥101.9 billion for the cumulative third quarter, ¥113.2 billion worse than in the same period of the previous year.」

「In the steel business, lower sales volumes resulting from a substantial decline in activity levels in demand industries and lower selling prices led to revenue of ¥1,027.2 billion, a decrease of ¥325.9 billion, or 24.1%, from the same period of the previous year. Although the company continued working to improve profitability, the decline in sales volumes and one-off factors reducing profit, including inventory valuation differences, resulted in a segment loss of ¥136.2 billion, ¥153.9 billion worse than in the same period of the previous year.」

「In the steel business, lower sales volumes resulting from a substantial decline in activity levels in demand industries led to revenue of ¥508.7 billion, a decrease of ¥157.9 billion, or 23.7%, from the same period of the previous year. Although the company continued working to improve profitability, the decline in sales volumes and one-off factors reducing profit, including inventory valuation differences, resulted in a segment loss of ¥57.8 billion, ¥72.3 billion worse than in the same period of the previous year.」

「Although the steel business recovered from operating problems at a blast furnace in the previous year, the impact of lower demand resulting from the slowdown in the global economy in Japan and overseas, together with the impact of the spread of COVID-19, particularly from March, meant that consolidated crude steel production for the consolidated fiscal year under review remained at 28.09 million tonnes, a slight increase from the previous consolidated fiscal year.」

「In the steel business, lower sales volumes due to the impact of trade frictions and deterioration in overseas market conditions resulted in revenue of ¥2,005.8 billion, a decrease of ¥142.7 billion, or 6.6%, from the same period of the previous year.」

「In the steel business, lower sales volumes due to the impact of trade frictions and deterioration in overseas market conditions resulted in revenue of ¥1,353.1 billion, a decrease of ¥49.4 billion, or 3.5%, from the same period of the previous year.」

「In the steel business, lower sales volumes resulted in revenue of ¥666.6 billion, a decrease of ¥26.4 billion, or 3.8%, from the same period of the previous year.」

「In the steel business, improved steel prices resulted in revenue of ¥2,126.2 billion, an increase of ¥134.3 billion, or 6.7%, from the same period of the previous year.」

「In the steel business, improved steel prices resulted in revenue of ¥1,386.6 billion, an increase of ¥91.9 billion, or 7.1%, from the same period of the previous year.」

「In the steel business, improved steel prices resulted in revenue of ¥685.9 billion, an increase of ¥49.5 billion, or 7.8%, from the same period of the previous year.」

「The business environment surrounding the steel business remains extremely challenging. In Japan, demand related to the Tokyo Olympic and Paralympic Games and other projects is expected over the next several years, but a substantial increase in demand for steel products cannot be expected over the longer term due to declining domestic demand associated with the declining birthrate and aging population. In addition, excess steel production, centered on China, continues worldwide.」

「Demand for steel products in Japan and overseas remained firm, but soaring raw material prices, particularly for coking coal, since autumn 2016 led to a substantial increase in manufacturing costs. Against this backdrop, ongoing efforts to improve steel prices resulted in revenue of ¥1,991.9 billion, an increase of ¥336.4 billion, or 20.3%, from the same period of the previous year.」

「In the steel business, demand conditions in Japan and overseas were on a recovery trend, but soaring raw material prices, particularly for coking coal, since last autumn led to a substantial increase in manufacturing costs.」

「In the steel business, demand conditions in Japan and overseas were on a recovery trend, but soaring raw material prices, particularly for coking coal, became a major source of cost increases.」

「Although demand for steel products in Japan and overseas showed signs of recovery, the impact of oversupply of steel products in Asia and sluggish energy-related demand meant that the market had not yet recovered fully.」

「Domestic inventory adjustments made further progress, and demand for steel products showed signs of recovery. Overseas, the steel market, which had fallen sharply since summer 2015, bottomed out and showed some recovery. However, the impact of oversupply of steel products in Asia remained significant, and the market had not yet recovered fully.」

「Although domestic inventory adjustments made some progress, the recovery in demand for steel products continued to lack strength. Overseas, the steel market, which had fallen sharply since last summer, showed signs of bottoming, with some recovery in certain fields. However, the impact of oversupply of steel products in Asia remained significant, and the market had not yet recovered fully. Against this backdrop, revenue was ¥1,072.4 billion, a decrease of ¥173.6 billion, or 13.9%, from the same period of the previous year. Although the company continued working to improve profitability, the deterioration in the selling environment and the rapid appreciation of the yen resulted in an ordinary loss of ¥24.4 billion, ¥63.0 billion worse than in the same period of the previous year.」

「However, the impact of lower selling prices resulting from oversupply of steel products in Asia was significant. Revenue was ¥528.4 billion, a decrease of ¥92.4 billion, or 14.9%, from the same period of the previous year. Although the company continued working to improve profitability, the deterioration in the selling environment, inventory valuation differences resulting from lower raw material prices, and the impact of foreign exchange fluctuations resulted in an ordinary loss of ¥20.3 billion, ¥41.8 billion worse than in the same period of the previous year.」

「Due in particular to the deterioration in market conditions caused by continuing global oversupply in the steel business, group results for the consolidated fiscal year under review declined from the previous consolidated fiscal year, both in consolidated ordinary profit and profit attributable to owners of the parent.」