TOKYO, Feb 6 (Reuters) - Nippon Steel ( NISTF ), Japan's

biggest steelmaker, posted on Thursday an 18% drop in nine-month

net profit to 362 billion yen ($2.4 billion) amid sluggish steel

demand in Japan and overseas.

On its bid for U.S. Steel - which was blocked last

month by then U.S. President Joe Biden, Nippon Steel ( NISTF ) said that

there can be no guarantee that the transaction will close.

Together with U.S. Steel, it filed a number of lawsuits

challenging Biden's decision.

Nippon Steel ( NISTF ) kept its net profit forecast for the fiscal

year ending in March unchanged at 310 billion yen.

"Increase in exports due to the expanded structural

supply/demand gap in China continues to cause global spreads

weakness," Nippon Steel ( NISTF ) said. "There is no prospect of

improvement in real demand and margins at home and abroad."

Nippon Steel ( NISTF ) said on Thursday it planned to sell all 10.7

million shares in holds in Kobe Steel ( KBSTF ), with the latter

expected to do the same with all 6.7 million Nippon Steel ( NISTF ) shares

it owns.

($1 = 152.4600 yen)

(Reporting by Katya Golubkova; Editing by Himani Sarkar and

Muralikumar Anantharaman)