SeAH Besteel, 2Q Operating Profit 93.9 Billion KRW... Up 393.6% YoY

Sales of 958.5 billion KRW... 70% increase compared to the same period last year
Operating profit continues to improve due to product price increases and cost reductions

[Asia Economy Reporter Hwang Yoon-joo] SeAH Besteel recorded its highest quarterly performance ever since acquiring SeAH Changwon Specialty Steel.

SeAH Besteel announced on the 29th that its operating profit on a consolidated basis for the second quarter of this year reached 93.9 billion KRW, a 393.6% increase compared to the same period last year. During the same period, sales rose 70% to 958.5 billion KRW. In particular, sales marked the highest quarterly figure since the second quarter of 2014 (586.9 billion KRW).

SeAH Besteel explained, "Sales significantly increased due to rising demand from front industries such as automobiles and construction heavy equipment, as well as the seasonal peak period. Operating profit expanded thanks to product price hikes reflecting raw material cost increases and cost reduction efforts that lowered fixed costs."

Steel demand has remained steady since COVID-19; however, with various countries declaring carbon neutrality, global steel production is expected to gradually decrease. Because of this, the industry anticipates that the steel supply shortage will continue for the time being.

SeAH Besteel stated, "We expect production and sales in the second half of this year to show better-than-expected strength. Although the third quarter is a seasonal off-season due to vacations and the Chuseok holiday, resulting in a slight decline compared to the second quarter, a rebound is expected from the fourth quarter."

SeAH Besteel analyzed that the price competitiveness of Chinese products will weaken due to China's recent abolition of export VAT refunds and production cut decisions. From a long-term perspective, an expansion of SeAH Besteel's domestic market share is expected as the proportion of Chinese products in the domestic market decreases. However, risks such as the resurgence of COVID-19 and potential declines in Chinese demand industries remain, so the company plans to maximize operational efficiency through sales diversification, optimization, and improved market forecasting.

This content was produced with the assistance of AI translation services.