Vice Chairman Takahiro Mori stated that the U.S. steel market remains highly attractive due to import tariffs and strong demand.
Mori emphasized that market conditions in the United States are extremely favorable, noting that hot rolled coil prices are trading above USD 1,200/mt. He pointed out that this level is more than double that of Asian markets. U.S. Steel has reportedly restarted its blast furnace in Illinois to increase production and raised capacity utilization rates to benefit from the current pricing advantage.
Long-term profitability outlook improves
Company management expects U.S. Steel to have the potential to generate annual profits of between JPY 300 billion and JPY 400 billion in the long term. Mori stated that the market outlook is expected to remain strong through 2027, creating additional growth opportunities.
Following Nippon Steel’s USD 14.9 billion acquisition of U.S. Steel, integration activities have accelerated. Approximately 100 employees assigned from Japan are reportedly working on 260 operational improvement projects aimed at increasing efficiency.
U.S. Steel’s board of directors has approved approximately one-third of the USD 11 billion investment package committed by Nippon Steel through 2028. These investments are expected to generate annual returns of around USD 3 billion by 2035.
Risks and global growth targets
Mori stated that inflation-driven cost pressures and labor availability challenges remain among the key risk factors. Despite the U.S. government holding a golden share, it was noted that there has been no direct intervention in the company’s management following the acquisition.
Nippon Steel is expected to continue its global expansion by focusing on the markets of United States, India, Thailand, and Europe. The company aims to increase profit generated from its overseas operations to more than JPY 500 billion by 2030.
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