Hyundai Steel Q3 Operating Profit 373 Billion KRW... Down 54.9% YoY

Deterioration of Steel Market Conditions and Decline in Product Selling Prices

[Asia Economy Reporter Choi Seoyoon] Hyundai Steel's operating profit for the third quarter of this year dropped by more than half compared to the previous year due to rising energy costs.

Hyundai Steel announced on the 27th that it recorded sales of 6.9999 trillion KRW and an operating profit of 373 billion KRW for the third quarter of this year. Operating profit decreased by 54.9% compared to the same period last year. It also fell by 54.6% compared to the previous quarter.

Sales increased by 19.4% compared to the previous year but decreased by 5.2% compared to the previous quarter. This was due to the deterioration of the steel market conditions and a decline in product selling prices. Net profit for the period was 263.8 billion KRW, down 55.7% year-on-year.

A Hyundai Steel official explained, "Profitability declined as products produced with high-cost raw materials were sold amid falling market prices in the second half of the year."

Along with this, Hyundai Steel reported that it is expanding global automotive steel sheet sales by completing material certification for hot-stamping steel for nine Chinese automakers and is focusing on expanding its customer base by securing orders for thick plates for energy projects such as the Yeonggwang Nakwol offshore wind power and the Juaymah oilfield natural gas in Saudi Arabia.

Hyundai Steel's efforts to lead the low-carbon product market are also notable.

Hyundai Steel succeeded in developing a prototype of a 1.0GPa-class low-carbon premium plate that reduces carbon emissions by more than 30% through an electric furnace, the world's first, and obtained global CFP1) pre-certification for low-carbon wire rod products and electric furnace utilization processes for the first time in Korea.

Through this, it plans to proactively respond to the needs and demand markets of global customers related to carbon neutrality.

A Hyundai Steel official stated, "Due to concerns about a global economic downturn and sluggish Chinese real estate market, steel demand is decreasing, and global steel prices are expected to remain weak due to high-intensity tight monetary policies. We plan to focus on strengthening a stable business foundation centered on profitability."

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