JFE’s crude steel production increased by 1.47mn mt from 4.79mn mt in Q1FY20. Selling prices improved due to improved demand. The company’s steel business revenue was up by 25pc to JPY638.5bn in Q1 FY2021 compared to JPY508.7bn in Q1 a year ago. Steel segment profit rose by 20pc to JPY69.7bn in Q1 compared to JPY57.8bn in Q1 FY2020.
The company’s crude steel volume on standalone terms was 6.25mn mt in Q1 and export ratio was around 43pc.
The average sales price was JPY87,600/mt which is around JPY12,000 higher than the same quarter, a year ago. The jump was JPY9,000 compared to Q4 2021 which was at JPY78,800.
JFE now expects a net profit of JPY240bn ($2.2bn), its highest since 2007/2008 against its May estimate of JPY130bn and a loss of JPY21.9bn, a year ago.
JFE holdings’ revenue was up by 18pc to JPY888.9bn in the first quarter in FY2021 versus JPY743.9bn in the same period, a year ago, according to its earning reports. Its business profit was JPY88.3bn, total segment profit was JPY85.4bn, and profit attributable to owners of parent was JPY61.9bn, which showed an improvement by JPY130bn and JPY100bn from the same period in the prior year.
Economies around the world have continued to pick up since the second half of the previous year. Therefore, demand for steel has been strong and steel market price has risen sharply leading to a strong recovery in earnings, stated the report.