Nippon Steel’s Profitability Holds Despite Downturn

Nippon Steel recorded an underlying business profit of ¥793.7 billion in FY2024, translating to approximately $151/ton, down from $175/ton in FY2023. This marks a 13% decline in EBITDA per ton, reflecting a challenging macro environment dominated by weak domestic steel demand and intensifying Chinese exports. Crude steel production fell slightly to 34.3 million tons, with additional capacity cuts following the closure of upstream facilities at Kashima in March 2025.

Despite the downturn, Nippon Steel maintained robust profitability through aggressive cost reductions and structural reforms. Its raw material segment contributed positively, aided by lower procurement costs and increased self-sufficiency.

Looking ahead, FY2025 EBITDA per ton is likely to dip further as profit guidance has been revised downward to ¥600 billion. However, strategic expansion in India and the U.S., along with EAF deployment and automation, positions the company to sustain long-term profitability amid global volatility.