Nippon Steel increased steel production by 2% y/y in October-December

Japan’s Nippon Steel increased its consolidated steel production by 2.2% y/y – to 10.26 million tons in the third quarter of fiscal year 2023/2024 (October-December 2023). This is reported by SteelMint with reference to the company’s data.

Unconsolidated steel supplies in October-December decreased by 2% q/q – to 7.95 million tons. Compared to the same period last year, this figure remained in the same range.

Nippon Steel’s consolidated profit in the third quarter of fiscal year 2023/2024 decreased by 19% q/q – to 198.1 billion yen ($1.32 billion). As the company noted, it is expected that this figure for the current fiscal year will amount to approximately 800 billion yen ($5.35 billion).

According to SteelMint, the company aims to create a business structure that ensures stable profitability even in difficult market conditions. This is the basis for the next stage of growth – achieving the strategic goal of 100 million tons of global steelmaking capacity. To realize its vision of increasing global steel production capacity, the company plans to expand AM/NS India (a joint venture with ArcelorMittal) and continue mergers and acquisitions, equity participation and expansion of existing steel plants.

Nippon Steel is on track to complete the planned acquisition of US Steel by the end of September this year. The company has intensified negotiations with key stakeholders, including labor unions. Japan’s three largest banks – Sumitomo Mitsui Financial Group, Mitsubishi UFJ Financial Group and Mizuho Financial Group – plan to provide the company with a loan totaling $16 billion for the planned acquisition of the American steelmaker.