Japan-based Kobe Steel expects its ordinary loss from steel business to reach JPY67bn ($631mn) in the fiscal year 2020 ending March 2021 compared to the ordinary income of JPY8.8bn last year. 

 

Consolidated net sales in the year are anticipated to reach JPY1,640bn and the company could register an operating loss of JPY60bn and a net loss of JPY30bn. For the year, crude steel is expected to drop by 18pc to 5.4mn mt and sales of steel products are expected to reach 4.35mn mt, also down by 18pc. 

After the Japanese government eased lockdown restrictions on May 25, 2020, economic activity in the country has gradually started to pick up. However, the timeframe for recovery of Japanese markets from COVID-19 impact is uncertain. 

In Q1 2020, the steel maker’s total crude steel production was 1.17mn mt, a decline of 32pc from the prior-year quarter, while sales dropped by 29pc to 970,000mt. 

 

In the first quarter of 2020, Kobe Steel reported a total ordinary loss of JPY23bn ($217mn) compared to the ordinary income of JPY519mn ($4.8mn) in Q1 FY2019. Firm raw material cost and a sharp decline in finished steel demand due to subdued activity in the automobile and construction sectors pressured the steelmaker. 

 

 

 

 

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