In January this year, South Korean steelmakers POSCO and Hyundai Steel experienced a significant drop in their profit margins, according to local South Korean media reports.
In January, POSCO's operating profit totaled KRW 100 billion ($88.86 million), while Hyundai Steel's operating profit came to KRW 40 billion ($35.54 million). The profit margin of both companies in January was approximately three percent, compared to an average profit margin of 10.7 percent for POSCO in 2011, with an average profit margin of eight percent for Hyundai Steel in the same year. Decreases in steel prices are considered to be the main reason for the decline in the steelmakers' profit margins.