Japan-based steelmaker Kobe revises its forecast of crude steel production to approximately 6.7mn mt, up 0.1mn mt from the previous forecast. Sales volumes of steel products were also revised upwards by 0.1mn mt to 5.5mn mt on an anticipated increase in demand from many sectors, particularly automotive from China.
In Q1 FY2021, the company reported an increase in steel sales and a rise in prices. The company returned to profits with sales revenue of JPY463.2bn, up by 24pc from the prior year, stated the company’s release. The increase in net sales is due to a recovery in demand, mainly from the automobile sector, against a low base in 2020 as a result of the COVID-19 pandemic.
The average sales price for steel improved to JPY90,700/mt, up JPY10,600/mt compared to Q1 of the previous year. Revenues improved due to a rise in sales and improvement in inventory valuation despite a decline in metal spreads driven by the increase in raw material prices, which continues to influence profit and loss, highlighted the company release.