Japanese JFE cuts production to stabilize prices

Japan's JFE has announced that it will reduce its annual crude steel output and raise its profit target for the full year.

JFE agreed to cut production to stabilize the price and announce confidence. JFE's actions, also the first to be announced by Asian plants, contrast with continued production in South Korea, China's inefficiency, and the decline in blast furnace loading by Taiwan and Vietnam. JFE stressed that it has made better-than-expected progress in raising product prices after adjusting production volumes and plans to accelerate the pass-through of various costs to customers in the second half of the year.

The global economic situation is particularly focused on demand from China, which is expected to recover in the second half of the second half of the year. However, the recovery in China's crude steel and automobile production could be affected by a slowdown in the global economy.