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Nippon Steel's US Steel earnings are boosted by a strong American steel market

Nippon Steel is the world's third largest steelmaker. Vice Chairman Takahiro Mori, the vice chairman of U.S. Steel, said that he expects the American steel market to be buoyant. This is supported by import tariffs and resilient consumer demand.

"We're confident that the U.S. "We are confident that?U.S. He predicted that U.S. Steel will generate a profit of between 300 billion and 400 billion yen per year in the long term.

Mori described U.S. market conditions as favourable. Hot-rolled steel sheets are priced at more than $1,200 per ton. This is double what they cost in Asia. U.S. steel reopened an Illinois blast furnace that had been idle in March to take advantage of the favorable pricing environment. It is now operating it at full capacity.

His comments follow a year after Nippon Steel completed the $14.9 billion purchase of U.S. Steel, following an 18-month battle in Washington over political and regulatory issues.

Mori stated that about 100 Nippon Steel employees seconded to Japan are working on operational improvement initiatives. These initiatives help boost yields and create synergies. Mori said that U.S. Steel has approved about one-third the $11 billion Nippon Steel investment package through 2028. Returns are expected to grow to $3 billion per year by 2035.

Mori acknowledged the risks of inflation-driven costs pressures and labour shortages, as projects compete to attract workers. But he said that?U.S. The government has not interfered with management decisions since the deal closed, even though it holds a golden stake.

Mori stated that Nippon Steel will continue to pursue overseas growth, "focusing on the U.S.A., India Thailand and Europe."

Mori stated that the company aims to increase its overseas profit to 500 billion yen (nearly five times fiscal 2025 level) by 2030.

Mori, the person who led negotiations for U.S. Steel's acquisition, stated that global structural changes had made it more important for overseas companies to establish relationships with government officials, and align their investments and operations with industrial policies.

(source: Reuters)