Nippon Steel maintains lower prices

The largest steel mill in Japan, Nippon Steel & Sumitomo Metal Corp, is poised for a weaker steel market in Asia because the escalating Sino-American trade war could reduce steel demand in China and Southeast Asia, the company's senior executive said.

The biggest uncertainty is how steel demand and market will change in China and Southeast Asia. Nippon Steel Maintains Lower Prices Amid Fears Of Slower Growth In China

“We expect steel prices in Asia to weaken in the second half (October to March) from the first half (April to September), although the Japanese market is likely to remain solid amid strong demand,” he said, citing fiscal year that starts in April.

The third largest steel company in the world by steel production posted a 43% increase in net profit in the six months ended September, as its profit increased by 3,200 yen ($ 28.44) per tonne at higher product prices.

But the company expects the rise in margins to narrow to Y2,000 in a year, as steel prices in the rest of Asia are expected to fall in six months between October and March from the previous six-month period, Miyamoto said.

Chinese futures for steel rebar used in construction fell 4 percent from late September to their lowest level since July amid growing uncertainty over global trade and fears of slowing demand in China.

“Trade friction between the US and China has so far had a limited effect on the global steel market due to healthy demand in China and elsewhere, but if the Chinese economy weakens and China raises steel exports to Southeast Asia,” he said ...

Japanese steelworkers enjoy solid domestic demand from automakers and equipment manufacturers, as well as the construction sector, which is involved in projects at the Tokyo 2020 Olympic Games in Tokyo.

But natural disasters and disruptions to their aging facilities prevent them from producing as much steel as they planned.