Nippon Steel Vice Chairman Takahiro Mori said strong demand and tariff protection in the U.S. steel market could allow U.S. Steel to beat current profit forecasts, according to a Reuters report.
Mori said he expects U.S. Steel to generate profits of more than 100 billion yen ($619.93 million) this year and indicated favorable market conditions to 2027 could provide additional growth potential. In the long term, he said, the company could achieve annual profits of 300-400 billion yen.
High steel prices support outlook
Market conditions in the United States remain very favorable, Mori said, with hot-rolled coil prices remaining above $1,200 per ton, more than twice the prevailing level in Asia. To capitalize on the strong pricing environment, US Steel restarted an idled blast furnace in Illinois in March and is now operating the plant at full capacity.
He added that US Steel's board of directors has already approved about one-third of the $11 billion investment program Nippon Steel has promised through 2028. Mori said income from these investments is expected to grow to about $3 billion annually by 2035.
Global expansion remains a priority
While acknowledging potential problems, including inflationary price pressures and labor shortages, Mori said the U.S. government has not interfered with management decisions despite retaining a golden share in the company. Looking beyond the U.S., he said Nippon Steel will continue to pursue growth opportunities overseas despite increasing protectionism and geopolitical uncertainty. The company's international expansion strategy remains focused on the United States, India, Thailand and Europe.
Mori added that Nippon Steel aims to increase overseas profits to more than 500 billion yen by 2030, nearly five times the level recorded in fiscal 2025. He also noted that global structural changes have increased the importance of maintaining strong relationships with policymakers and aligning foreign investment with national industrial strategies.
