- Nippon Steel posts 3% drop in production
- Major steelmakers report decline in revenues
Nippon Steel, JFE Holdings, ArcelorMittal, Hyundai Steel, and POSCO Holdings, major players in the global steel industry, have published their consolidated financial results for Q2CY’25 (April-June 2025). Notably, Nippon Steel, POSCO Holdings and JFE Holdings reported decline in crude steel production for the quarter. Additionally, all these steelmakers recorded a decline in revenue.
Crude steel production
Nippon Steel’s non-consolidated crude steel production stood at 8.27 million tonnes (mnt) in Q1FY’25, declined by 3% q-o-q from 8.5 mnt in previous quarter. Furthermore, the consolidated crude steel production of the company decreased by 4% q-o-q to 9.46 mnt in Q1FY’25 against 9.89 mnt in Q4FY’24.
POSCO Holdings’ crude steel production in Q2CY’25 is around 8.374 mnt, edged down by 3% q-o-q as compared to 8.651 mnt in Q1CY’25. In contrast, on y-o-y basis same increased by 5% y-o-y as of 8mnt in Q2CY’24.
JFE Holdings’ quarterly non-consolidated crude steel output in Q1FY’25 (April-June 2025) stood at 5.28 mnt, inched down by 2% q-o-q as compared to 5.39 mnt in Q4FY’24 (January-March 2025). Moreover, consolidated output marginally decreased by 1% q-o-q to 5.61 mnt from 5.67 mnt in previous quarter.
ArcelorMittal’s crude steel production in Q2CY’25 stood at 14.4 mnt, representing a drop of 3% q-o-q against 14.8 mnt in Q1CY’25.
Financial results, market overview
Nippon Steel’s revenue for Q1FY’25 (April-June 2025) stood at JPY 2,008.7 billion, declined by 6% q-o-q as compared to JPY 2,143 billion in Q4FY’24. Furthermore, the company’s operating profit in Q1FY’24 stood at JPY 139,559 million fell sharply by 41% y-o-y from JPY 236,977 million in the same period a year ago.
POSCO’s operating profit in Q2CY’25 was KRW 513 billion, up by KRW 167 billion or 48% q-o-q as compared to KRW 346 billion in Q1CY’25. While, the company’s revenue from steel sales remained range-round on q-o-q basis.
POSCO’s infrastructure segment faced additional costs from offshore projects, including losses in Malaysia and Poland. Unfavourable foreign exchange and asset impairments also pressured profitability, offsetting cost optimization and restructuring efforts.
JFE Holdings’ revenue in Q1FY’25 dropped by JPY 96 billion y-o-y to JPY 1,115.3 billion as compared to JPY 1,211.1 billion in the same period a year ago.
The automotive sector, a significant consumer of steel, faced disruptions from U.S. tariffs on automobiles, creating uncertainty for exports and making it difficult to project future demand. This was compounded by challenges in the shipbuilding industry, where labour shortages and increasingly complex specifications slowed construction pace, hindering short-term growth in steel consumption.
Similarly, the construction and civil engineering sectors were plagued by rising material costs and persistent labour shortages, leading to a stagnation in activity and making a swift recovery unlikely. In the other manufacturing category, both construction and industrial machinery saw slowed demand due to inventory adjustments in the U.S. market, spurred by high interest rates, and China’s economic downturn.
Hyundai Steel’s consolidated revenue for Q2CY’25 is KRW 5,946 billion, increased by KRW 383 billion or 7% q-o-q from KRW 5,563 billion in Q1CY’25. While, on q-o-q basis, same decreased by KRW 95 billion or 2% y-o-y against KRW 6,041 billion a year ago.
Consolidated revenue for Hyundai Steel increased in the second quarter of 2025 due to a rise in sales volume and a drop in raw material prices. Additionally, profits from subsidiaries also saw improvement.
Additionally, non-consolidated revenue for Q2CY’25 KRW 4,680 billion, up by KRW 390 billion or 9% q-o-q from KRW 4,290 billion. However, on a y-o-y basis, same fell by KRW 172 billion or 4% y-o-y as of KRW 4,852 billion last year.
ArcelorMittal’s operating income for Q2CY’25 is $1,932 million, rose sharply by $1,107 million m-o-m against $825 million in Q1CY’25. Moreover, on y-o-y basis same hiked by $886 million from $1,046 million in Q2CY’24.
ArcelorMittal’s operating income surged due to one-time gain from AM/NS Calvert acquisition, positive price-cost effect in Europe, and higher contributions from India and joint ventures.
Outlook
The steel industry’s short-term outlook is uncertain due to declining production and revenue trends amid global market challenges. US tariffs, labour shortages, and rising costs will impact demand. However, companies like ArcelorMittal and Hyundai Steel may show resilience due to positive price-cost effects and strategic gains, with market conditions playing a crucial role.
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