POSCO’s profit slashed by half amid higher raw material costs in Q3

Thursday, 24 October 2019 16:47:32 (GMT+3)   |   Istanbul
       

South Korean steelmaker Pohang Iron and Steel Co. (POSCO) has announced its consolidated financial results for the third quarter of the current year, reporting a net profit of KRW 497 billion ($424 million), down 53 percent compared to the same quarter of the previous year, on the back of higher raw material costs.

In the third quarter, POSCO's sales revenues decreased by 2.6 percent year on year to KRW 16 trillion ($13.6 billion), while its operating profit amounted to KRW 1.04 trillion ($887.4 million), falling by 32 percent compared to the same quarter of the previous year.

In the given period, POSCO produced 9.55 million mt of crude steel, remaining almost stable year on year, while its finished steel sales decreased by 0.3 percent year on year to 8.95 million mt. 

According to POSCO, global steel demand will see a modest growth in 2019 supported by sound Chinese steel demand, supported by infrastructure and property market expenditures and tax cuts, although the manufacturing sector is depressed.

Regarding the raw materials outlook, POSCO expects iron ore prices to be in the range of $90-95/mt for the fourth quarter as China reinforces environmental regulations for the winter season and there is restocking demand in reserve for the supply disruption during the rainy season (Dec-Mar) in Brazil and Australia, while supply from major countries is in good condition.


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