Japanese steel major Nippon Steel released its third quarter results for the current fiscal year ending 31 Mar'22. The company's crude steel output and steel shipments saw a decline in the Oct-Dec'21 quarter compared to the previous quarter (Jul-Sept'21).
Non-consolidated crude steel output stood at 9.64 million tonnes (mnt) in Q3, a decrease of 4% as compared to 10.05 mnt in the previous quarter. In the nine months of the current fiscal (Apr-Dec'21), crude steel output was up 29% to 29.87 mnt.
Non-consolidated steel shipments fell marginally by 1.4% to 8.96 mnt in Oct-Dec'21 as against 9.09 mnt seen in the previous quarter. Steel shipments increased 22% to 27.25 mnt in Apr-Dec'21.
Consolidated business profit stood at JPY 265.9 bn ($2.31 bn) in Q3.
Steel expansion plans
Steel plate mill in Nagoya works is to be terminated in H2 of this fiscal (Oct-Mar'22). Prior to this, upstream facilities in the Kure area, a series of upstream facilities in Wakayama area, titanium welded pipe production line in Kyushu works, Oita area, were terminated in H1 of the ongoing fiscal.
Further, the re-lining of BF No.3 in Nagoya works has been undertaken for about 130 days, starting from 31 Jan'22 to early-Jun'22.
Investments to increase electrical steel sheet capacity by 50%.
Installation of EAF in Setouchi works in Hirohata area. The facility's operations will start in H12022.
The company plans to expand its global crude steel capacity to 100 mtpa.
It also plans to acquire G Steel and GJ Steel, the two integrated steel mills (with EAFs and hot strip mills) in Thailand, in Feb'22. Both have a combined steel production capacity of 3.08 mnt.
AM/NS India has signed an MoU with the Gujarat government to invest INR 4,200 crore for the expansion and modernisation of their captive jetty in Hazira and INR 45,000 crore to increase the Hazira plant's steel production capacity from the current 8.6 mtpa to 18 mtpa.
The steel major also received approval from the Odisha government for land towards the proposed new integrated steel mill in Kendrapara.
Carbon neutral vision by CY'50: Nippon Steel has announced CO2 emissions reduction plans. The target for CY'30 is 30% or more reduction in total CO2 emissions over those registered in 2013. By CY'50, the company is eyeing carbon neutrality.
Forecasts lowered
The company forecasts to achieve 38.80 mnt of crude steel in the current fiscal (Apr'21-Mar'22). The annual target has been revised down from 39.70 mnt forecast on 2 Nov'21. The forecast has been lowered on decline in demand from China and fall in auto production due to chip shortages, logistics stagnation and labour shortages due to Covid.
Steel shipments are expected to reach 35.60 mnt this fiscal, down from the earlier forecast of 36.20 mnt on 2 Nov'21.
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