Hyundai Steel reports higher net profit for Q2, expects strong demand amid recovery

Tuesday, 27 July 2021 14:49:32 (GMT+3)   |   Istanbul

South Korean steelmaker Hyundai Steel (Hyundai) has announced its financial results for the second quarter this year.

Accordingly, Hyundai Steel has posted a net profit of KRW 353 billion ($305.91 million) for the second quarter this year, compared to a net profit of KRW 220 billion in the first quarter.

Meanwhile, in the second quarter this year, the company’s sales revenues increased by 13.9 percent quarter on quarter and rose by 36.7 percent year on year to KRW 5.62 trillion ($4.87 billion), while its operating profit totaled KRW 545 billion ($472.33 million), compared to an operating profit of KRW 304 billion in the first quarter and an operating profit of KRW 14 billion in the second quarter of the previous year. According to the company’s statement, its net profit and sales revenues increased as global steel market recovered.

In the second quarter this year, the company’s finished steel production amounted to 4.66 million mt, decreasing by 0.6 percent year on year, while its steel sales volume totaled 5.03 million mt, up by 7.7 percent year on year, amid the recovery in the steel market.

According to the company, global steel demand is expected to be strong as downstream industries are in recovery phase. The company expects the economic growth rate to recover on the back of fiscal support and vaccine-distribution expansion. Hyundai Steel also expects construction demand to remain strong, and auto production to be at normal levels amid ease in chip issue. Regarding raw material and steel prices, the company said that iron ore and coal prices will be strong due to global fiscal policy and high demand for steel. The company expects steel prices to be stagnant in the second half this year due to strong demand despite ease on steel shortage. 

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