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Japan's JFE cuts yearly earnings projection on sluggish regional demand, dropping Asia market

Japan's secondbiggest steelmaker, JFE Holdings, lowered its forecast for yearly net revenue by 37%, struck by slow need for building materials at home and a slumping Asian market amid growing exports from China.

The company now predicts net profit of 130 billion yen ($ 844 million) for the to March 31, down from its August quote of 205 billion yen.

JFE likewise cut its yearly dividend projection to 100 yen a share from its August forecast of 110 yen, while lowering its crude steel output intend on parent-basis to 22.4 million metric loads, down 0.6 million heaps from its earlier estimate.

Demand for building materials in Japan is anticipated to deteriorate even more in the second half, due to rising construction expenses and labour shortages, Executive Vice President Masashi Terahata told a press conference.

In overseas, China's oversupply and increasing exports have scrubby steel market in Southeast Asia ... We are feeling a. sense of crisis, he stated, adding that the marketplace was not most likely. to recover before next March.

Net earnings for the 6 months ended on Sept. 30 fell 61%. from a year earlier to 42.49 billion yen.

Japanese steel market sources have actually said weak domestic. need has encouraged China to offload its surplus stocks by. offering competitive prices to abroad buyers.

Japan may take trade action if required in action to growing. steel exports from China, the world's greatest steel manufacturer, an. official of its industry ministry said in October.

(source: Reuters)