Hyundai Steel Reports Q2 Operating Profit of 822.1 Billion KRW... Strong Performance Driven by Price Increase

[Asia Economy Reporter Jeong Dong-hoon] Hyundai Steel showed strong performance, recording an operating profit of 822.1 billion KRW in the second quarter of this year.

On the 26th, Hyundai Steel announced that its consolidated sales for the second quarter of this year increased by 31.3% compared to the same period last year, reaching 7.381 trillion KRW, and operating profit rose by 50.8% to 822.1 billion KRW. The operating profit margin also improved by 1.4 percentage points from 9.7% in the same period last year to 11.1%.

Hyundai Steel explained that despite a slight decrease in sales volume compared to the previous quarter due to shipment delays caused by the Cargo Solidarity strike, sales increased due to price hikes driven by rising steel raw material costs.

Looking at the performance by sector, the global automotive steel sheet division is increasing supply volume by expanding overseas customers, while the heavy plate division continues to secure stable volumes thanks to increased order backlogs from domestic shipbuilders and strong orders for high value-added vessels such as LNG carriers.

For construction steel such as rebar and shaped steel, Hyundai Steel is leading the related market by expanding the supply of seismic-resistant steel. In the research and development sector, Hyundai Steel stated that it is focusing on developing high-performance special steel and high-strength heat-treated steel to respond to the advent of the full-scale electric vehicle era.

As part of this effort, the independently developed special steel for electric vehicles was recognized for improving vehicle driving quietness and durability, and received new technology certification from the Ministry of Trade, Industry and Energy in June.

There were also company-level efforts and achievements in the carbon-neutral era.

Hyundai Steel said, "We are conducting various projects to realize our corporate identity as a 'sustainable and eco-friendly steel company,'" adding, "Recently, we signed a memorandum of understanding (MOU) for carbon-neutral technology cooperation with the Korea Institute of Energy Technology, aiming to improve steel mill equipment performance and optimize operations. Additionally, we are conducting comprehensive technological cooperation on hydrogen production and carbon capture, utilization, and storage (CCUS) technologies."

Furthermore, to develop optimal utilization and operational technologies for various raw materials used in steel mills, Hyundai Steel signed an MOU with the Korea Institute of Geoscience and Mineral Resources and is focusing its capabilities on introducing leading technologies related to mineral resources.

Meanwhile, regarding the steel market outlook for the second half of the year, Hyundai Steel forecasted that private orders in the construction industry are turning downward due to rising construction costs, and that production recovery in the automotive industry will be delayed due to continued parts supply imbalances. It also stated, "Global steel prices are turning downward due to weak iron ore and coking coal prices caused by sluggish steel demand in China," and added, "To overcome this, we plan to secure profitability by strengthening sales of high value-added products and reduce costs through innovation in the manufacturing sector."

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