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5411 - JFE Holdings Inc News Story

¥1427 -18.0  -1.3%

Last Trade - 16/04/21

Basic Materials
Large Cap
Market Cap £5.48bn
Enterprise Value £17.47bn
Revenue £21.72bn
Position in Universe 179th / 3902

Japan's JFE trims annual loss estimate on recovery in steel demand

Tue 9th February, 2021 9:52am
TOKYO, Feb 9 (Reuters) - Japan's second-biggest steelmaker
JFE Holdings Inc  5411.T   
on Tuesday trimmed its net loss estimate for the current
financial year by over 60%, thanks to a sharp rebound in steel
demand from a pandemic-induced collapse.   
    Last week, rivals Nippon Steel Corp  5401.T  and Kobe Steel
Ltd  5406.T  upgraded their earnings forecasts, encouraged by
higher export prices and recovering demand.  urn:newsml:reuters.com:*:nL4N2K8253 
    JFE now expects a net loss of 38 billion yen ($363 million)
in the year ending March 31 compared with an earlier 100 billion
yen loss estimate. 
    "Demand from industries centring on automobiles has picked
up at home and abroad," JFE Holdings Executive Vice President
Masashi Terahata told a news conference, adding that stronger
overseas market has also boosted its export margin.
    "We expect a gradual demand recovery from local industries,
except for shipbuilding, will continue in the next financial
year," he said.
    Reflecting improved demand, JFE's crude steel output on a
parent basis for the current year is now expected to reach 22.7
million tonnes, 200,000 tonnes more than its previous estimate.
It produced 26.73 million tonnes a year earlier.
    Crude steel output in Japan, the world's third-biggest
producer, dropped 16% in 2020 from the previous year to the
lowest volume since 1969 as the pandemic collapsed demand from
industries such as automobiles and construction, forcing
steelmakers to curb production.  urn:newsml:reuters.com:*:nL4N2JX2BI
    JFE reported a net loss of 69.7 billion yen for the nine
months to December 31, against a net profit of 26.9 billion yen
a year earlier.
    ($1 = 104.7900 yen)

 (Reporting by Yuka Obayashi; Editing by Simon Cameron-Moore)
 ((Yuka.Obayashi@thomsonreuters.com; +813-6441-1798; Reuters
Messaging: yuka.obayashi.thomsonreuters.com@reuters.net))
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