South Korea’s steel major – POSCO announced its Q2 CY ‘20 results yesterday. The major findings from the quarterly report are as follows:
1. Company’s crude steel output declines by 14% in Q2 CY’20- Crude steel production stood at 7.79 mn t in Q2 CY ’20, declining by 14% in comparison to 9.06 mn t in the previous quarter. Meanwhile on a yearly basis, the same dropped down significantly by 17% against 9.4 mn t in Q2 CY’19. The production volume fell due to dull demand & postponement of the restart of Gwangyang#3 blast furnace.
2. Company’s sales dropped by 10% in Q2- Sales volume dropped by 10% to 7.76 mn t in Q2 CY ’20 as against 8.62 mn t in the previous quarter. Also on a yearly basis, the same fell by 11% against 8.75 mn t in Q2 CY ’19.
3. Exports sales fell by 9%- The company exported 3.528 mn t in Q2 CY ’20 lower by 9% against 3.892 mn t. Meanwhile the same fell by 5% y-o-y basis against 3.72 mn t in Q2 CY ’19.
4. Domestic sales fell by 10% in Q2- Domestic sales stood at 4.23 mn t in Q2, dropping by 10% against 4.72 mn t in the previous quarter. Similarly on a yearly basis, the same declined by 16% against 5.024 mn t in Q2 CY ’19.
5. Product inventory dropped by 9% in Q2- Company’s product inventory moved down by 9% to 1.12 mn t in Q2 against 1.10 mn t in the previous quarter. Similarly on a yearly basis, the same fell by 8% against 1.221 mn t in Q2 CY ’19.
6. Carbon steel sales price fell by 7% in Q2- Carbon steel sales prices fell by 7% to 643 billion KRW in Q2CY20 against 692 billion KRW in the previous quarter. Also on a yearly basis, the same slumped by 13% against 735 billion KRW in Q2 CY ’19.
7. Company raised production and sales guidance- Crude steel production guidance has been modified to 35.3 mn t (against 34.1 mn t previously announced)and product sales guidance has been revised to 33.8 mn t compared to previously announced 32.4 mn t.
Leave a Reply