Hyundai Steel reports net loss for Q3
South Korean steelmaker Hyundai Steel (Hyundai) has announced its financial results for the third quarter this year.
Accordingly, Hyundai Steel has posted a net loss of KRW 45 billion ($39.93 million) for the third quarter, compared to a net loss of KRW 13 billion in the second quarter and a net loss of KRW 66 billion in the third quarter of 2019.
Meanwhile, the company’s sales revenues increased by 8.5 percent quarter on quarter and fell by 11.5 % year on year to KRW 4.46 trillion ($3.95 billion) in the period in question, while its operating profit totaled KRW 33 billion ($29.28 million), compared to an operating profit of KRW 14 billion in the second quarter and an operating profit of KRW 34 billion in the third quarter of the previous year.
According to the company’s statement, its operating profit gradually recovered despite the reduced volume caused by the restructuring of business and the coronavirus. Consolidated sales improved on the back of the recovery of the company’s operating rate and sales from overseas subsidiaries.
In the third quarter this year, the company’s finished steel production amounted to 4.53 million mt, decreasing by 3.41 % quarter on quarter and by 12.03 % year on year, while its steel sales volume totaled 4.85 million mt, up by 3.85 % quarter on quarter and down by 5.45 % year on year. Production decreased due to the shutdown of its mini-mill and demand contraction caused by bad weather, while sales increased due to the recovery in domestic and overseas automobile demand.
According to the company, global steel demand is expected to increase due to the global economic recovery and China’s normalizing economy. Hyundai Steel also expects demand from the construction sector to be at last year’s level and demand from automotive industries to recover. Regarding raw material and steel prices, the company said that iron ore prices would be sluggish due to the slowdown in growth in winter, while coal prices are foreseen to decrease given China’s current policy.