South Korean steel giant Hyundai Steel released its financial results for Q3CY’21. The steelmaker reported a fall in steel sales in the quarter ending Sept’21. However, crude steel production remained stable q-o-q.
Highlights:
- Steel sales fall slightly: Sales volumes were recorded at 4.54 million tonnes (mn t) in Q3CY’21 as against 5.04 mn t in Q2CY’21, a decrease of 10% q-o-q.
- Crude steel output largely stable: Crude steel production was recorded at 4.61 mn t in Q3CY’21 as compared to 4.65 mn t in the previous quarter. Both production and sales declined due to seasonal slowdown in demand and market activities and subcontracted workers’ strike.
- Revenue increases sharply: The company’s revenue increased to KRW 5,150 billion ($4.41 billion) in Q3CY’21 from KRW 4,866 billion ($4.16 billion) in Q2CY’21. Rise in prices in longs and flats supported the price hike.
- South Korea’s construction, auto demand recovers: Construction and automobile demand recovery continued by housing policy and global economic recovery. Investment in construction sector in CY’21 is expected to remain around KRW 268.4 trillion ($229.8 billion) as against KRW 264.2 trillion ($226.2 billion) seen a year back.
Similarly, the country’s automobile production figures are expected to increase to 3.8 million units in CY’21 from 3.5 million units in CY’20 backed by stimulus packages.
New eco-friendly ship orders and hike in global trade volumes are likely to support domestic shipbuilding in South Korea.
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