Three of the leading Japanese steelmaker has reduced its annual profit expectations this month, as falling steel prices in Asia have undermined their export margins, while the decline in demand for cars abroad and the fall in the use of machinery within the country has forced them to cut production.
steel company came under the negative impact of the global economic slowdown affected by a trade dispute between the US and China, as well as from rising prices for raw materials such as iron ore, while the largest steel producer in the world China, increase production to support its economy.
the Largest steel producer in Japan, Nippon Steel, has reduced its estimate of profit from the business by 33% to 100 billion yen (about 917 million U.S. dollars) for the year to March 31 after reporting a decline of 54% in the period from April to September.
"the Global economy is weak, and car sales worldwide are falling. We see no signs of a recovery in international steel markets," said Executive Vice President of Nippon Steel Katsuhiro Miyamoto.
on Tuesday JFE Holdings, the second largest Japanese steel producer, lowered its annual profit forecast from business 57% to 60 billion yen, saying that the profit from the steel segment drops to zero, the lowest level since the company's founding in 2002.
"the economy of the ASEAN (Association of Southeast Asian Nations), India and Europe is slowing in terms of trade dispute between the US and China, while steel prices abroad decline due to tough competition," said Executive Vice President of JFE Masashi Terahata.
"Domestic demand has also slowed, particularly in industrial and construction equipment, and even construction," he said.
Third producer of steel in Japan, Kobe Steel has revised its forecast for the year to a net loss of 5 billion yen compared with the earlier projected profit of 10 billion yen, amid weak demand for cars abroad and in the domestic market.
the Fall in demand has forced the three companies to cut their annual plans of steel production by 1-5%.
steel Manufacturing in Japan in the quarter July-September fell to its lowest level in 10 years amid falling demand and after the closure of several plants after typhoons and fires.
