South Korean steelmaker Pohang Iron and Steel Co. (POSCO) has announced its consolidated financial results for the second quarter of the current year, reporting a net profit of KRW 545 billion ($461.7 million), down six percent compared to the same quarter of the previous year.
In the second quarter, POSCO's sales revenues decreased by three percent year on year to KRW 7.5 trillion ($6.35 billion), while its operating profit amounted to KRW 724 billion ($613.4 million), falling by 12 percent compared to the same quarter of the previous year.
In the second quarter this year, POSCO produced 9.44 million mt of crude steel, up 0.7 percent year on year, while its finished steel sales decreased by 2.4 percent year on year to 8.74 million mt.
Regarding the demand outlook, POSCO stated that, despite the slowing economy and the trade disputes between the US and China, the Chinese steel demand forecast for 2019 has been lifted from the previous zero growth to one percent supported by the expectations due to the government’s boost policy. The company also indicated that emerging economies including India and Southeast Asia will show 5-7 percent growth in steel demand, while geographical risks will drag down demand growth in the MENA region. POSCO said that, while supply conditions improve as Vale increases iron ore production, the market will still be tight as Chinese port restocking is prolonged, and so it expects iron ore prices to be in the range of $100-110/mt in the third quarter.