Major steelmakers reported record earnings for the first half, powered by strong worldwide demand.
JFE Holdings Inc., the country's second-largest steelmaker, said Wednesday its operating profit for the April-September period jumped 69 percent to a record 186.11 billion yen on revenue of 1.24 trillion yen, up 10 percent.
Its net profit -- after-tax profit reflecting extraordinary gains and losses -- dropped 24 percent to 34.16 billion yen, mostly due to a 74 billion yen charge to write down the value of its assets.
The firm enjoyed robust steel demand during the period, driving up average steel product prices. JFE's average steel price rose to 57,700 yen per ton from 50,500 yen a year ago.
At a news conference to announce the results, Tetsuo Miyazaki, JFE executive vice president, said domestic steel prices were still more than 20 percent lower than international prices.
He said the steelmaker would continue to ask for an increase from clients that include automakers and shipbuilders.
JFE's rivals are similarly enjoying a boom.
Nippon Steel Corp., the nation's No. 1 steelmaker, reported last month that its first-half net profit jumped 2.2-fold to a record 81.04 billion yen on revenue of 1.51 trillion yen, up 13 percent.
Sumitomo Metal Industries Ltd. and Kobe Steel Ltd., the nation's third- and fourth-largest steelmakers, also reported record earnings for the six-month period.
Robust worldwide steel demand, propelled in large part by China, has led to steep rise in prices for coking coal, iron ore and alloyed metals.
JFE said the rising cost of steelmaking materials is expected to slash 135 billion yen from its full-year profit.
To secure a stable source of vital raw materials, JFE and other Japanese steelmakers have been strengthening their alliances with the world's major mining concerns, including BHP Billiton, Rio Doce and Rio Tinto, by such means as acquiring partial interests in mines.