Jan 13 (Reuters) - Nippon Steel Corp's crude steel production is expected to decline by over 7 percent for the current fiscal year ending March 31, on a strong yen and the Thailand floods, Japanese business daily The Nikkei said.
For the full year, the company expects to record production of about 30.03 million to 30.13 million tons, lower than its earlier crude steel production estimate of 31 million tons, the daily said.
Japan's blast furnace steelmakers have been focusing more on exports to emerging markets to offset sluggish domestic demand. But the yen's sharp rise has hurt their profitability, the newspaper said.
Reconstruction from the Japan earthquake has been slow, forcing steelmakers to reduce output. Domestic steel inventories have also remained high due to Thai floods and other factors, Nikkei said.
Crude steel production at rival steelmaker JFE Steel Corp, a unit of JFE Holdings Inc, is also expected to fall 6 percent to 27 million this fiscal, The Nikkei said.