Overview
Nippon Steel announced that its subsidiary U.S. Steel is expected to generate profits exceeding 100 billion yen (approximately $624 million) in 2026, with a longer‑term target of 300‑400 billion yen annually.
Market Conditions
The company highlighted that hot‑rolled steel sheet prices in the United States are above $1,200 per metric ton, more than double the price levels observed in Asia, providing a favorable pricing environment.
Operations
U.S. Steel restarted its previously idled blast furnace in Illinois in March and is now operating it at full capacity to capitalize on the strong market.
Investment and Synergies
Since completing the $14.9 billion acquisition of U.S. Steel, about 100 Nippon Steel staff have been seconded to work on 260 operational‑improvement initiatives. The U.S. Steel board has approved roughly one‑third of the $11 billion investment programme pledged through 2028, and the company expects returns to rise to $3 billion per year by 2035.
Risks
Mori identified inflation‑driven cost pressures and labour shortages as risks, as competing projects vie for workers.
Governance
Although the U.S. government retains a golden share in U.S. Steel, it has not intervened in management decisions since the acquisition closed.
Growth Outlook
Nippon Steel plans to continue overseas expansion, focusing on the United States, India, Thailand and Europe, and aims to increase overseas profit to more than 500 billion yen by 2030, roughly five times its fiscal‑2025 level.