South Korea’s leading steel manufacturer, Hyundai Steel, released its financial results for the quarter ended March 2022. The company’s production, sales as well as revenues recorded an uptrend on both quarterly and annual basis.
Highlights:
- Crude steel production at 4.71 mnt in Q1: The company’s crude steel production was recorded at 4.71 million tonnes (mnt) in Q1CY22, up a marginal 1% as against 4.66 mnt in the preceding quarter and an increase of 5% against 4.50 mnt in Q1CY21.
- Sales volume up 8% q-o-q: Sales volumes stood at 4.96 mnt in Q1CY22, up by 8% compared to 4.61 mnt in Q4CY21. On an annual basis, the same inched up 1% as against 4.92 mnt last year.
- Revenue jumps 6% q-o-q to KRW 6,086 billion in Q1: The company’s revenue increased to KRW 6,086 billion ($4.87 billion) in Q1CY22 from KRW 5,724 billion ($4.58 billion) a quarter ago. On y-o-y basis, revenue improved sharply by 43% from KRW 4,252 billion ($3.4 billion) last year.
Demand drivers in CY22:
- Construction: With the administration’s efforts to deregularise construction activities and plans afoot to invest KRW 270 trillion (tn) in CY22 — up 4% y-o-y, deferred demand is likely to improve compared to last year. Orders from the construction sector are expected to grow by 1.4% y-o-y to KRW 215 tn in CY22.
- Automobile: Korea’s automobile production is expected to grow to 3.6 mn units in Q1CY22, an increase of 4% compared to 3.46 mn in CY21.
- Shipbuilding: In Q1CY22, shipbuilding back orders jumped by 26% to 29 million CTG (compensated gross tonnage) in comparison to 23 million CTG last year. Shipbuilders in Korea secured more than 49% of global orders at 9.20 million CGT in Q1. Moreover, Korea dominates high-value added (HAV) LNG ships. Out of 37 LNG ship orders in Q1, Korean builders secured 26.
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