Nippon Steel increased steel production by 23.3% in April-December

Japan’s largest steel producer, Nippon Steel, increased its steel output by 23.3% year-on-year to 36.61 million tons in the first nine months of fiscal year 2025/2026 (April-December 2025), according to SteelOrbis.

Shipments of steel products for the period decreased by 2.4% year-on-year – to 23.31 million tons.

The company expects its steel production to reach 50 million tons by the end of the 2025/2026 fiscal year.

In April-December, the company posted a net loss of ¥20.81 billion ($132.35 million), compared with a net profit of ¥386.39 billion in the same period last year. Net sales for the period amounted to ¥7.26 trillion ($46.17 billion, +10.7% y/y), operating profit – ¥107.05 billion ($680.93 million).

According to the company’s report, in 2025/2026, except for certain sectors such as artificial intelligence, electric power, and defense, demand in the manufacturing and construction industries in Japan and abroad is sluggish. The widening gap between supply and demand caused by the slowdown in the Chinese economy and overproduction is increasing cheap exports from China. This is leading to a downturn in the global market and extremely difficult market conditions, especially in the ASEAN region.

The company considers further expansion of Chinese steel exports unlikely.

Nippon Steel also notes that although tariffs and trade restrictions have begun to contribute to market recovery in Europe and the US, the spread of such protectionist policies around the world increases the risk of cheap steel products being redirected to Japan. Therefore, it is necessary to actively promote the study and implementation of trade countermeasures in the country.

As a reminder, Nippon Steel plans to invest 6 trillion yen (approximately $39 billion) over the next 5 years as part of its new medium-term business plan. The goal is to increase profits at home and abroad. The announced amount includes planned investments of nearly $11 billion in US Steel by the end of 2028. The company also expects to increase its global steel production capacity to 100 million tons per year or more by 2030.