South Korea: POSCO’s crude steel output marginally up q-o-q in Q3CY’21

South Korean steel giant POSCO announced its quarterly results for this quarter ending on Sept’21 (Jul-Sept) results today. The company posted a marginal q-o-q increase in crude steel production while steel sales for the quarter remained largely stable q-o-q.

Crude steel output up 2.6% q-o-q
POSCO posted an increase of 2.6% q-o-q in its crude steel production at 9.70 million tonnes (mn t) in Q3CY’21. Production went up as a result of the completion of a major overhaul at one of its steel plants in Q2.

Output of steel products increased marginally by 1% to 9.11 mn t in Q3 to meet the demand from cold rolled and coated products’ consumers.

Average capacity utilisation increased to 94.6% in Q3CY’21 compared to 93.2% in Q2CY’21.

• Steel sales stable q-o-q
  Total sales of steel products increased were recorded at 9.02 mn t in Q3CY’21, stable compared to Q2CY’21 figures (8.99 mn t). Strong domestic demand increased sales of CR and coated products.Domestic sales ratio stood at 61.2% in Q3CY’21 from 59.9% in previous quarter. Sales of HR coils were at 76,000 tonnes (t), plates were at 34,000 t and CR/coated products at 129,000 t.
• Financial results –
  Despite increased raw material costs, POSCO’s operating profit hit the highest in Q3CY’21 at KRW 2.29 billion ($1.96 billion), up by 42.7% q-o-q backed by rising steel prices.The company’s revenue was recorded at KRW 11.31 billion ($9.68 billion), up 21.9% q-o-q.
• POSCO Maharashtra performance
  POSCO Maharashtra posted a sharp decline in operating profit and sales volume despite hike in product prices due to auto-semiconductor shortage.Operating profit was recorded at $42 million in Q3CY’21 as compared to $62 million in Q2CY’21. Revenue stood at $395 million in Q3 as against $370 million.Steel sales volume from Maharashtra unit decreased by 7.1% q-o-q to 325,000 t in Q3CY’21.
  Product prices from this unit increased by 12% q-o-q in this quarter.
• POSCO Krakatau performanceThe company reported record high operating profit level as prices maintained uptrend due to continuing steel market sentiments. Operating profit was recorded at $206 million in Q3CY’21 as compared to $129 million in Q2CY’21.Company’s product prices increased by 26% q-o-q.

  CY’21 target intact
  POSCO kept its crude steel production and steel sales target intact for CY’21. The company targets to achieve 38.2 mn t of crude steel output and 35.6 mn t of steel sales this year.