Hyundai Steel Expects Strong Steel Prices in Q4

Hyundai Steel Co., South Korea's second-largest steelmaker by sales, expect steel prices to remain strong in Q4 amid positive demand from construction sector and supply constrain due to maintenance, company reported this in its 3rd quarter result.

Key highlights of Q3 Results

1. Third quarter profit down by 40% Y-o-Y due to increased cost of production and reduced currency gains

2. Long steel production increased by 4% from 2.17 million tonnes in Q2 to 2.27 million tonnes in Q3.

3. Flat steel production reduced by 3% from 3.2 million tonnes in Q2 to 3.1 million tonnes in Q3

4. Company sees long steel prices to increase by 70,000 Won ($62) in Q4 owing to positive sentiment in construction sector

5. Company expects global steel demand to improve by 2.8% in 2017 versus 2016

6. Restriction of steel production in order to prevent air pollution starts in Beijing-Tianjin-Hebei and surrounding areas, this may reduce steel output by 35 million tonnes (estimated), which is positive for global steel industry