Japan steelmakers see profit dive in April-June

23 Jul, 2012

Japan's biggest steelmakers likely suffered a plunge in recurring profit of up to 80 percent in the April-June quarter as competition with Chinese rivals drove prices down, a report said Sunday. Nippon Steel likely recorded less than 10 billion yen (127 million) in consolidated recurring profit for the three months, down about 80 percent from a year earlier and nearly half from January-March, the Nikkei business daily said.
Japan's second-ranked JFE is also believed to have suffered a 60 percent plunge in recurring profit in the quarter, the paper said without naming its sources. Major Japanese steelmakers suffered as their Chinese rivals ramped up output, driving steel prices sharply lower across Asia and denting the profitability of Japanese exports, the paper said.

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