East Asian steel majors post decline in profitability in July-September 2022

The three major steel companies of East Asia, Baowu Steel Group, POSCO Holdings and China Steel Corporation (CSC) posted sharp decline in their consolidated financial results during the July-September quarter due to falling global steel prices and sluggish demand.

Baowu Steel's consolidated profit fell sharply to around RMB 2 billion ($0.27 billion) during July-September as major subsidiaries like Baoshan Steel works and Zhanjiang Steel Works struggled to make profits. The company recorded a consolidated profit of RMB 34-35 billion ($5 billion) during the first nine months of the year after posting a good performance in H1CY'22. Furthermore, it is anticipated that total profit will reach to RMB 40 billion ($6 billion) in CY'22.

South Korean steelmaker POSCO booked consolidated profit of KRW 920 billion ($0.64 billion) during July-September despite disruptions caused by typhoon Hinnamnor. However, the company incurred loss of around KRW 435.5 billion ($0.30 billion) due to damage caused by the typhoon.

Taiwan's China Steel Corporation (CSC) posted decline in operating profit by nearly 60% y-o-y to TWD 25.5 billion ($0.79 billion) during January-September.

Moreover, Baosteel and CSC have kept steel prices unchanged as demand is likely to remain subdued in the upcoming quarter considering concerns related to inflation and increasing competition due to sluggish demand. The focus will be more on rebuilding the business performance for January-March 2023.

Note: This article has been written in accordance with an article exchange agreement between Japan Metal Daily and SteelMint.