South Korean steelmaker Hyundai Steel (Hyundai) has announced its financial results for the second quarter this year.
Accordingly, Hyundai Steel has posted a net loss of KRW 13 billion ($10.8 million) for the second quarter, compared to a net loss of KRW 115 billion in the first quarter and a net profit of KRW 51 billion in the second quarter of 2019.
Meanwhile, the company's sales revenues fell by 11.8 percent quarter on quarter and by 26.2 percent year on year to KRW 4.11 trillion ($3.42 billion) in the period in question, while its operating profit totaled KRW 14 billion ($11.66 million), compared to an operating loss of KRW 30 billion in the first quarter and an operating profit of KRW 233 billion in the second quarter of the previous year. According to the company’s statement, despite the decline in sales due to the shutdown of overseas subsidiaries, profit improved slightly quarter on quarter.
In the second quarter this year, the company’s finished steel production amounted to 4.69 million mt, decreasing by 7.85 percent quarter on quarter and by 15.95 percent year on year, while its steel sales volume totaled 4.67 million mt, down by 7.89 percent quarter on quarter and by 19.6 percent year on year.
According to the company, global steel demand is expected to decrease due to the global economic downturn and uncertainty. Hyundai Steel also foresees a recovery in demand from the construction and auto industries due to investments and the resumption of auto production. Regarding raw material and steel prices, the company said that iron ore prices increased amid rising demand in China, while coal prices decreased due to the global demand decline. Despite the increase in the global steel prices, the pace of recovery of demand is limited, Hyundai Steel indicated.