South Korean steel major Hyundai Steel reported a y-o-y decline in its crude steel production and steel sales volumes in CY’21. Lower production and sales volumes were mainly due to restructuring, facility and labour issues.
The company released its operational and financial results for CY’21 on 27 Jan’22.
Operational highlights (non-consolidated) –
- Crude steel output down: The company’s crude steel production was down by 3.3% to 18.43 million tonnes (mnt) in Jan-Dec’21 compared to 19.07 mnt in CY’20.
- Steel sales drop: Hyundai’s steel sales volume stood at 19.11 mnt in CY’21, a decrease of 2.8% y-o-y compared to 19.67 mnt in the previous year.
Financial results (consolidated):
- Revenue jumps: The company’s revenue rose by 27% to KRW 22.85 trillion ($19 bn) in CY’21 as against KRW 18.02 tn ($15 bn) in CY’20.
Construction, auto demand to grow in CY’22
Investments in the construction sector are expected to increase by 2.4% to KRW 270.4 trillion ($0.22 tn) in 2022 supported by government projects.
Similarly, automobile production is expected to grow 3.4% to 3.60 million units this year from 3.48 million units in 2021 due to pent-up demand.
Shipbuilding is expected to decrease by 22.8% to 36 million CGT as ship prices increase and demand for containers drop.
CY’22 outlook
Hyundai Steel expects non-consolidated steel sales volumes to reach 19.97 mnt in 2022, increasing by 4.5% y-o-y. It also aims to develop high performance/eco friendly technology (with low carbon output) for sustained growth in 2022.
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