"Steel Product Demand↑" Operating Profit Quadruples at SeAH Steel Holdings

A panoramic view of the Hornsea zone in the UK, where SeAH Wind, the UK subsidiary of SeAH Steel, has agreed to supply monopiles, structural components for offshore wind power facilities.

[Asia Economy Reporter Choi Dae-yeol] SeAH Steel Holdings announced on the 15th that its consolidated operating profit for the third quarter reached 86.06 billion KRW, a 296% increase compared to the same period last year. Sales rose 35% during the same period, totaling 723.633 billion KRW.

Steel demand increased, leading to higher selling prices and improved profitability. The company explained, "Due to strong demand in North American oil & gas, construction, and infrastructure industries, sales of key products such as energy pipes and piping materials increased," adding, "With local supply chain bottlenecks intensifying, pipe prices remained strong, maintaining high sales and operating profit levels at our North American subsidiary."

Furthermore, steady domestic construction industry demand and a booming home appliance industry improved the profitability of major products from subsidiaries (SeAH Steel, Dong-A Steel, SeAH CM), significantly boosting performance, according to the company. Looking at the main affiliate SeAH Steel alone, operating profit was 36.08 billion KRW, a 105% increase from the third quarter of last year.

The company expects profitability to remain consistently strong for the time being due to a clear global economic recovery. With international oil prices showing strength, the passage of the U.S. infrastructure budget bill, and an increase in renewable energy projects such as offshore wind power, sales of pipes and structures are expected to rise. Additionally, from the perspective of domestic steelmakers, the operating environment is positive due to China's steel production cuts and export restrictions, as well as the global rise in raw material prices. However, the company anticipates variables such as the Chinese government's price stabilization efforts, easing of supply chain bottlenecks, and relaxation of the U.S. Trade Expansion Act Section 232 against Europe.

A company official stated, "Since strong demand, supply constraints, and price volatility risks coexist, we will secure sound profitability through sales price policies based on market dominance and strategic global sourcing policies," adding, "With the acceleration of energy transition following the COP26 summit, an increase in orders for offshore wind and liquefied natural gas (LNG) projects is expected, accelerating the acquisition of large-scale energy projects such as the Honsi3 project."

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