Top East Asian steelmakers report significant Q1CY’25 profit growth despite uncertain outlook

Japan Metal Daily: The top three East Asian steel companies, China’s Baowu Steel Group, South Korea’s POSCO Holdings, and Taiwan’s China Steel Corporation (CSC), have reported a significant increase in profits for the January-March period of 2025.

Strong Q1 performance

Baowu Steel Group: The company’s consolidated profit reached nearly RMB 6 billion (approximately JPY 120 billion) for the January-March period, with Baoshan Steel’s operating profit increasing by over 20% y-o-y to approximately RMB 3.5 billion, while Baowu Group’s profit increased by more than 10% y-o-y. This accounts for a substantial portion of the overall profit in China’s steel industry, which recorded a cumulative profit and loss of about RMB 7.5 billion during the same period.

POSCO Holdings: The company’s consolidated operating profit was KRW 568 billion (approximately JPY 57 billion), down by 2.6% y-o-y. However, the operating profit of the steel business increased by over 30% to KRW 450 billion (approximately JPY 45 billion), driven by strong performance from its overseas steel business, particularly Posco Mahashtra in India.

China Steel Corporation (CSC): CSC posted an operating profit of approximately TWD 1.4 billion (approximately JPY 6.0 billion), an increase of nearly 80% y-o-y, marking a gradual recovery in profitability.

Uncertainty in H2 2025

Despite strong earnings in the first quarter, the steel industry faces uncertainty in the second half of the year due to factors such as:

U.S. trade policy: Changes in trade policies may impact the global steel market, affecting demand and prices.

Market conditions: The market is gradually becoming looser, with some companies offering discounts, which may lead to a decline in earnings.

Raw material costs: Fluctuations in raw material costs may impact profitability.

Outlook

Stakeholders expect the April-June period to maintain a similar level of profitability as the January-March period, driven by steady orders and raw material costs. However, the uncertainty surrounding the second half of the year may affect future profitability.

Note: This article has been written in accordance with a content exchange agreement between Japan Metal Daily and BigMint.