Nippon Steel, ranked third among the world’s largest steelmakers, is bullish on the American steel market and believes favorable conditions could push U.S. Steel’s earnings well above current projections, according to the company’s Vice Chairman Takahiro Mori.
“We are confident that U.S. Steel will be able to post profits in excess of 100 billion yen ($624 million) this year,” Mori said. He added that the positive market outlook stretching through 2027 points to even greater potential gains, and that U.S. Steel could generate between 300 billion yen and 400 billion yen in annual profit over the long term.
Mori described conditions in the U.S. as exceptionally favorable, noting that hot-rolled steel sheet prices have climbed above $1,200 per metric ton — more than twice what the same product fetches in Asian markets. To take advantage of those pricing conditions, U.S. Steel brought back online a previously idled blast furnace in Illinois in March and is now running it at full capacity.
These remarks come roughly a year after Nippon Steel wrapped up its $14.9 billion acquisition of U.S. Steel, a deal that took 18 months to complete and encountered significant political and regulatory resistance in Washington.
Mori said approximately 100 Nippon Steel employees seconded from Japan are currently working on 260 separate operational improvement initiatives aimed at increasing efficiency and generating synergies between the two companies. He also noted that U.S. Steel’s board has already signed off on about one-third of the $11 billion investment package Nippon Steel pledged to deliver through 2028, with projected returns expected to grow to $3 billion annually by 2035.
While Mori acknowledged potential headwinds — including cost pressures tied to inflation and competition for workers among major projects — he said the U.S. government has not stepped in to influence day-to-day management decisions since the acquisition closed, despite holding what is known as a “golden share” in the company.
Looking beyond the U.S., Mori said Nippon Steel plans to keep expanding internationally, with a focus on markets in India, Thailand, Europe, and the United States, even as geopolitical tensions and rising protectionism create uncertainty worldwide.
“We aim to lift overseas profit to more than 500 billion yen by 2030, nearly five times fiscal 2025 levels,” Mori said.
Mori, who personally led the negotiations to acquire U.S. Steel, said shifts in the global landscape have made it increasingly important for multinational companies to cultivate relationships with key government officials and align their business strategies with national industrial priorities.
(Note: $1 = 160.26 yen at time of reporting)
