South Korean steelmaker Hyundai Steel (Hyundai) has announced its financial results for the first quarter this year.
Accordingly, Hyundai Steel has posted a net profit of KRW 220 billion ($197.69 million) for the first quarter this year, compared to a net loss of KRW 267 billion in the fourth quarter last year and a net loss of KRW 115 billion in the first quarter of 2020.
Meanwhile, in the first quarter this year, the company’s sales revenues increased by 2.9 percent quarter on quarter and rose by 5.5 percent year on year to KRW 4.92 trillion ($4.42 billion), while its operating profit totaled KRW 304 billion ($273.16 million), compared to an operating profit of KRW 55 billion in the fourth quarter and an operating loss of KRW 30 billion in the first quarter of the previous year. According to the company’s statement, its net profit increased as the profit from steel service centers in the EU and the US improved as demand recovered, while its sales revenues increased due to higher prices amid the booming global steel market.
In the first quarter this year, the company’s finished steel production amounted to 4.50 million mt, decreasing by 11.6 percent year on year, while its steel sales volume totaled 4.93 million mt, down by 2.9 percent year on year. Production and sales volumes decreased because of the streamlining of its businesses and its off-season.
According to the company, global steel demand is expected to increase through worldwide infrastructure investment. The company expects the economic growth rate to recover on the back of fiscal support and vaccine-distribution expansion. Hyundai Steel also expects construction demand to be strong due to the government’s housing plan, and auto exports to increase amid the recovery in demand. Regarding raw material and steel prices, the company said that iron ore prices will be strong, while coal prices are foreseen to be stagnant. The company expects steel prices to be strong amid increased demand and higher raw material prices.