Japan's two top steel makers, who have more than half of the raw steel home market, announced strong earnings for the April through June quarter on Monday.
Strong demand for high quality steel for transport machines and rising prices of raw materials contributed their profits.
Nippon Steel, the worldâ€™s second largest steelmaker, announced that its group net profit for their fiscal first quarter increased 16 percent to 86.70 billion yen from 74.75 billion yen a year ago while group sales increased 18 percent to 1.116 trillion yen from 942.79 billion yen.
Currently, global demands for high-grade steel used in car and ship production are increasing. Nippon Steel explained in the high demands for raw materials and the steel makerâ€™s effort for cost reduction contributed to the strong profit.
The steel maker said its average price of steel products had increased 10 percent to 78,300 yen per ton.
JFE Holdings Inc., the fifth-largest steel maker in the world and Japan's second biggest announced that its net profit in its first fiscal quarter soared 63 percent to 89.41 billion yen compared from the same quarter in the previous year.