South Korean steel major Hyundai Steel has released its financial results for Q2CY’22. The company has posted an increase in production and revenue; however, sales declined on a quarterly basis.
Highlights:
- Crude steel production up 3% q-o-q: The company’s crude steel production rose 3% q-o-q to 4.86 million tonnes (mnt) in Q2 compared with 4.71 mnt in the previous quarter. On y-o-y basis, the same increased 5% against 4.65 mnt in Q2CY’21.
- Sales down 2% q-o-q: Sales volume stood at 4.86 mnt in Q2CY’22, down 2% compared with 4.96 mnt in the preceding quarter. The same decreased 3% y-o-y against 5.03 mnt in the same quarter last year.
- Revenue increases 8% in Q2: Revenue increased 8% q-o-q to KRW 6,546 billion ($4.98 billion) against KRW 6086 billion ($4.63 billion) in the preceding quarter. On an annualised basis, revenue registered a sharp rise of 35% against KRW 4,866 billion ($ 3.70 billion) in the previous year.
Demand-driving sectors in Q2CY’22
- Construction: Private orders in the construction sector declined amid hike in raw material costs and sluggish business in the metropolitan areas. Orders from the construction sector are expected to decline marginally by 0.5% y-o-y to KRW 211 tn in CY’22.
- Automobile: Korea’s automobile production is expected to rise marginally to 3.48 mn units in CY’22, compared to 3.46 mn units in CY’21. The delay in recovery of production is majorly due to supply chain disruptions.
- Shipbuilding: Shipbuilding backorders rose 19.4% to 35.1 million CGT (compensated gross tonnage) against 29.4 million CTG in the previous year. Shipbuilders in Korea secured 46% of global ship orders in H1. Moreover, Korea dominates high-value added (HAV) LNG ships. Korean builders secured 63 out of 89 LNG ship orders in H1CY’22.
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