The chief financial officer of Nippon Steel Corporation, Takahiko Iwai, told Bloomberg that the long-running steel glut driven by record Chinese exports may be approaching its end, offering hope for a recovery in Asian markets. Iwai noted that Chinese exporters are increasingly struggling to generate profits amid oversupply, compounded by trade measures such as anti-dumping duties imposed by countries including Vietnam, South Korea, and Australia. “They’re gradually running out of places to go,” he said, suggesting the market could be “nearing the bottom” and poised for improvement, though he did not specify a timeframe.
China, the world’s largest steel producer, had boosted exports to offset a decline in domestic consumption caused by a prolonged property crisis. Despite a reduction in production last year, Chinese steel exports rose 7.5% to a record 119 million metric tons in 2025. To navigate growing restrictions, Beijing has encouraged shipments to regions with fewer barriers, such as the Middle East, and has promoted semi-finished products less affected by trade controls. Additionally, from January 1, China implemented a broad licensing system to regulate steel exports, signaling tighter government oversight.
Meanwhile, Nippon Steel is managing its own financial strategy as a bridging loan of roughly ¥2 trillion ($13 billion) used to fund its $14.1 billion acquisition of United States Steel Corporation nears maturity in June. The company has reduced the outstanding balance to around ¥1.3 trillion, repaying through yen-denominated hybrid loans and other instruments, while total interest-bearing debt rose to ¥5.3 trillion in December 2025. Iwai also addressed reports about potential convertible bond issuance, stating that no decisions have been made.
With Chinese supply pressures easing and trade protections influencing global flows, Nippon Steel’s leadership sees a cautiously optimistic outlook for the steel market in Asia, even as the company balances domestic and international expansion strategies.
