Hyundai Steel posts net profit of $ 198 million on price uptrend
Hyundai Steel, a major South Korean steelmaker, reported an increase in its net profit amid higher demand for steel, driven by the global economic recovery from the COVID-19 pandemic along with significant increase in selling price. The producer expects further rebound in steel demand this year.
In Q1 2021, Hyundai Steel posted a net profit of KRW 220 billion ($198 million) versus a net loss of KRW 115 billion ($103 million) in Q1 last year.
The company also reported operating profit of KRW 304 billion ($274 million) compared to an operating loss of KRW 30 billion ($27 million) last year.
Such positive results were mainly attributed to “rising prices during booming global steel demand,” the company said in the report.
The indicator of the company’s profitability, EBIT/t, amounted to $55.5/t compared to -$4.8/t in Q1 2020.
Although steel sales decreased by 3% on the year to 4.93 million t, the revenue of the company increased by 5.5% y-o-y amid higher steel prices.
Hyundai Steel forecasts an increase in global steel demand in FY 2021 amid stimulus and pandemic easing. The company also expects stronger demand for construction steel in the country (KRW 262.7 trillion, up 0.4% y-o-y), higher vehicles production (3.81 million t, up 8.5% y-o-y) and recovery in shipbuilding sector (9.67 million CGT, up 11% on year) amid higher orders for LNG ships, or LNG vessels.