South Korea: Hyundai Steel's crude steel production, sales dip in CY'22

South Korean steel major Hyundai Steel reported a y-o-y decline in crude steel production and sales volumes in CY'22. Lower production and sales volumes were mainly due to flood damage and labour strikes.

The company released its operational and financial results for CY'22 on 31 January, 2023.

Operational highlights (non-consolidated) -

• Crude steel output down: The company's crude steel production fell by 6% to 17.36 million tonnes (mnt) in CY'22 compared to 18.43 mnt in CY'21.
  
  
• Steel sales drop: Hyundai's Steel sales volumes stood at 18.28 mnt, a decrease of 4% y-o-y compared to 19.11 mnt in 2021.
  
  

Financial results (consolidated):

Revenue grows: The company's revenue rose by 18% to KRW 23.66 trillion ($19 bn) in CY'22 as against KRW 19.99 tn ($16 bn) in CY'21.

Outlook for CY'23

Investments in the construction sector are expected to decrease by 7.5% to KRW 207 trillion ($0.16 tn) in 2023. Uncertainty persists due to rapid rate hikes.

However, automobile production is expected to grow 1.4% to 3.75 million units this year from 3.70 million units in 2022 as supply issues ease.

Shipbuilding is expected to increase by 20.7% to 35.5 million CGT due to increase in backorders and sufficient backorders procured.

Hyundai Steel expects non-consolidated steel sales volumes to reach 19.58 mnt in 2023, increasing by 7.1% y-o-y. Iron ore prices are expected to remain on the higher side due to Chinese reopening post holidays. Also, coking coal prices are expected to remain on the higher side due to rain-led disruptions in Australia. The company aims to develop eco-friendly technology (with low carbon footprint) for sustained growth in 2023.