Source: Argus Media
South Korean steelmaker Hyundai Steel saw third-quarter sales volumes for both long and flat products fall year-on-year, with long products declining 14 percent to 1.2 million tonnes and flat products dropping 9 percent to 2.7 million tonnes. Sales to automotive customers, part of the flat segment, also declined 2 percent on the quarter to 1.2 million tonnes.
Despite lower sales volumes, earnings rose 3 percent year-on-year to 5.9 trillion South Korean won, approximately $4.4 billion. Profitability improved from the previous quarter as higher selling prices for key products helped offset cost pressures. However, third-quarter operating profit was 7 percent lower year-on-year at 87 billion won, while net profits rose to 84 billion won from 18 billion won a year earlier, likely indicating that rising costs are eating into margins.
Looking ahead, the steelmaker projects hot-rolled coil prices to slightly weaken due to subdued demand. Decreases are also expected for long products, though at a lower pace as markets deal with softer seasonal demand. Metallurgical coal prices rose on supply disruptions in China before declining again because of weak demand, Hyundai said. Iron ore is projected to follow suit, pressured by weak demand and high inventories. Scrap prices are expected to decline further, driven by major steelmakers' price cuts and weaker downstream demand.
The company highlighted progress on its electric arc furnace project in the US state of Louisiana, with commercial production targeted for 2029 as part of its strategy to expand automotive-grade and low-carbon steel production.
