POSCO Q3 CY'20 performance - key highlights

South Korea's steel major - POSCO announced its Q3 CY '20 results recently. The major findings from the quarterly report are as follows:

• Crude steel output grew by 22% in Q3- Crude steel production stood at 9.50 mn t in Q3 CY '20, increasing by 22% in comparison to 7.79 mn t in the previous quarter. Production of crude steel and products recovered on Gwangyang's #3 Blast Furnace's operation started and rebound of order volume similar to 3Q19. Meanwhile on yearly basis, output dropped slightly by 1% against 9.55 mn t in Q3 CY '19.
  
  
• Sales went up by 15% in Q3- Sales volume increased by 15% to 8.89 mn t in Q3 CY '20 as against 7.76 mn t in the previous quarter on increased demand from the auto sector. On the other hand, on a yearly basis, the same fell by 1% against 8.95 mn t in Q3 CY '19.
  
  
• Exports sales increased by 17% in Q3- The company exported 4.12 mn t in Q3 CY '20, rising by 17% against 3.53 mn t a quarter ago. On similar lines, the same increased by 4% annually against 3.98 mn t in Q3 CY '19.
  
  
• Domestic sales up by 13% in Q3- Domestic sales stood at 4.77 mn t in Q3, up by 13% as against 4.23 mn t in the previous quarter. However, on a yearly basis, the same declined by 4% against 4.97 mn t in Q3 CY '19.
  
  
• Product inventory dropped by 7% in Q3- Company's product inventory moved down by 7% to 1.04 mn t in Q3 against 1.12 mn t in the previous quarter. Similarly, on a yearly basis, the same fell by 15% against 1.22 mn t in Q3 CY '19
  
  
• Carbon steel sales prices drop by 9% q-o-q- Carbon steel sales prices stood at 634 thousand KRW in Q3CY20 lower by 9% against 643 thousand KRW in the previous quarter.
  
  
• POSCO Maharashtra's operating profits up - Operating profit gained on expanded sales volume under loosened lockdown in India. Sales volumes stood at 44 thousand tonnes in Q2 which touched 269 thousand tonnes in Q3. The state of Maharashtra is still under lockdown, but the economy reopened partially since May.
  
  

Outlook - POSCO is positive to achieve the set target of 35.3 mn t crude steel output in CY'20 with improved demand for steel in various sectors. The company also expects to achieve 33.8 mn t product sales, this year. These targets are similar to the company's announcement made last quarter.