The Japanese company JFE Steel forecasts a decrease in net profit and net sales in the 2025-2026 fiscal year, as well as the continuation of difficult market conditions.

Japanese steel company JFE Holdings Co. announced consolidated financial and operating results for the full 2025-26 fiscal year ended March 31.

For the full fiscal year, the company recorded a net profit of 74.03 billion yen (468.84 million US dollars) compared to a net profit of 93.25 billion yen in the previous fiscal year, while its net sales amounted to 4.54 trillion yen (28.75 billion US dollars), which is 6.6 percent less than last year.

Meanwhile, this year, JFE Steel's consolidated steel production fell to 22.55 million tons, down 2.8 percent from last year, and total steel shipments totaled 18.86 million tons, down 2.6 percent year-on-year.

In the next fiscal year, the company expects a net profit of 150 billion yen and net sales of 4.8 trillion yen.

Regarding the outlook, JFE Steel said that the domestic steel business environment is expected to remain challenging and steel demand is projected to remain broadly unchanged. Demand from the construction sector is expected to remain weak, while demand related to automobiles will remain stable.

Overseas markets are also expected to remain uncertain due to continued weak steel demand in China, overcapacity, and increased exports from China. In addition, protectionist trade measures imposed by various countries, especially the United States and Asian countries, are expected to continue to affect global supply and demand conditions.

Under these circumstances, JFE Steel's unrefined steel production is expected to remain at around 21.5 million tonnes in the next fiscal year. Although raw material prices are expected to remain high, the company expects improved profitability through further cost reductions, increased production of high-value-added products, and efforts to raise steel prices.