How should we view the 'strong comeback' of U.S. steel manufacturing?

Nippon Steel has now called home its most capable and profitable subsidiary—the Kurosaki Amagasaki and Yamato Special Steel divisions—and is using their accumulated earnings to subsidize its money-bleeding 'American Horse' (U.S. Steel), currently lying in the ICU. Every green pixel on the financial chart represents Nippon Steel personnel grinding their teeth in frustration as they pour money in—truly a company that loves high-stakes gambling. Incidentally, Yamato Special Steel appears to be the prototype for the 'glorious clan' depicted in literature. Were Tetsuhei Ironflat still alive, he might well wonder what to make of the fact that the very industry he fought so desperately to protect has now become mere fill-in gravel beneath the chaotic green pixels on the White House’s haphazardly drawn coordinate axes.

How did Nippon Steel’s $15-billion acquisition in Japan trigger massive losses and plunge its U.S. operations into crisis?

Japan’s largest steelmaker, Nippon Steel, completed a large-scale acquisition in the U.S. market for $15 billion in June 2025—yet this move triggered unprecedented financial turbulence. Not only did the company exclude its U.S. operations from its annual profit forecast, but it also exposed deeper, systemic risks inherent in global steel industry consolidation. Photo source: discoveryalert. This article is the 49th installment in the 'Central Asia Business Insights' series—a segment of the 'Resource Engineering Industry Rankings' initiative. It provides an in-depth analysis of investment, trade, and engineering-construction opportunities across Central Asia (Uzbekistan, Kazakhstan, Kyrgyzstan, Turkmenistan, Tajikistan) and neighboring countries (Afghanistan, Azerbaijan, Georgia, Armenia, Mongolia, Pakistan), covering industrial policies, legal frameworks, market trends, demand dynamics, competitive landscapes, and potential transaction opportunities. It also delivers intelligence on resources, engineering, and trade across the Middle East, Africa, and Eastern Europe. Plummeting post-acquisition performance and frequent strategic adjustments Following the June 2025 acquisition, Nippon Steel’s U.S. operations plunged into severe losses. In the six months ending September, the company posted an operating loss of ¥113.4 billion—reversing a ¥243.4 billion profit from the same period last year, representing a staggering swing of ¥356.8 billion. As a result, Nippon Steel revised its annual profit forecast downward from ¥793.7 billion to ¥680 billion (a 14.3% decline); its full-year loss forecast rose by 50% to ¥60 billion. Notably, these figures fully exclude contributions from its U.S. operations. Meanwhile, Nippon Steel has undertaken frequent strategic adjustments: it announced its withdrawal from Usiminas in Brazil, recording a ¥21 billion loss; and simultaneously unveiled a $14 billion U.S. investment plan—intending to allocate $11 billion between 2025 and 2028 toward technology transfer and facility modernization, with a target of achieving $500 million in annual synergies by 2030. Shifting dynamics in the U.S. steel market The U.S. steel market faces dual pressures: weakening demand and structural transformation.

Nippon Steel Raises FY26 Profit Forecast by 52% on Robust US Steel Earnings

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Nippon Steel raised its fiscal 2026 net profit forecast by 52% to 440 billion yen, driven by strong US Steel earnings and higher steel prices. Improved market conditions and operational efficiency were cited as key factors behind the upward revision.

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Nippon Steel Raises FY26 Profit Forecast by 52% on Robust US Steel Earnings

Nippon Steel Raises FY26 Profit Forecast by 52% on Robust US Steel Earnings

FAQ