- Nippon Steel’s crude steel output up 1% q-o-q
- ArcelorMittal witnesses 5% q-o-q drop in production
Nippon Steel, JFE, ArcelorMittal, and POSCO, major players in the steel industry, have published their consolidated financial results for the period of October-December 2024.
Crude steel production
Nippon Steel’s non-consolidated crude steel production during the period under review stood at 8.55 million tonnes (mnt), marginally up by 1% compared with 8.49 mnt in July-September 2024 (Q2FY’24). The company’s consolidated crude steel production for October-December 2024 remained largely stable at 9.78 mnt.
JFE Holdings non-consolidated crude steel output remained range-bound at 5.53 mnt in October-December. During the same time period consolidated crude steel production marginally dropped by 1% q-o-q to 5.83 mnt from 5.89 mnt in July-September 2024 (Q2FY’24).
ArcelorMittal’s crude steel production in October-December 2024 decreased by 5% q-o-q to 14 mnt as compared to 14.8 mnt in July-September 2024.
Financial results and market overview
Nippon Steel’s operating profit in October – December 2024 (Q3FY’24) dropped by 8.5% y-o-y to JPY 566,125 million from JPY 618,683 million in October-December 2023 (Q3FY’23). Furthermore, the company’s revenue stood at JPY 2,172.7 million, decreasing by 3% y-o-y as compared to JPY 2,229.3 million a year ago.
The recent rise in raw material and energy prices has increased the proportion of import-related costs in steel manufacturing. Since imports exceeded exports, the depreciation of the Yen is having a detrimental effect on domestic steel operations
JFE Holdings revenue decreased by JPY 86.7 billion y-o-y to JPY 828.9 billion against JPY 915.6 billion in October – December 2023 (Q3FY’23).
The automotive and shipbuilding sectors are likely to sustain manufacturing demand, but substantial growth is not anticipated until FY’25. Despite persistent challenges, including rising costs and labour shortages, the construction sector is showing signs of stabilisation as material price increases moderate.
POSCO’s operating profit in 2024 was KRW 1,473 billion, a decrease of KRW 610 billion y-o-y against KRW 2,083 billion in 2023. Moreover, the company’s revenue from steel sales in 2024 decreased by KRW 1,416 billion y-o-y to KRW 37,556 billion as compared to KRW 38,972 billion in 2023.
Operating profit declined due to market slowdown, despite successful cost-cutting measures such as increased usage of affordable coking coal and enhanced blast furnace charge mix. However, a strategic shift in product mix helped maintain profitability in India, despite lower market prices. Although challenging market conditions persisted, proactive cost-saving initiatives mitigated potential losses.
ArcelorMittal’s operating income for 2024 is $3.3 billion, up by $1 billion as compared to $2.3 billion in 2023.
The company is enhancing its ability to meet automotive demand through new electric arc furnaces and electric steel facilities. This indicates a focus on adapting to evolving industry trends and customer needs.
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