South Korea: Hyundai Steel's crude steel production, sales rise q-o-q in Q1CY23

South Korean steel major Hyundai Steel reported an increase in crude steel production and sales volumes q-o-q in Q1CY23. Higher output and sales were mainly due to normalised operations following the resolution of labour strike in the previous quarter.

The company released its operational and financial results for Q1CY23 on 26 April, 2023.

Operational highlights (non-consolidated) -

• Crude steel output rises q-o-q: The company's crude steel production rose by 37% to 4.62 million tonnes (mnt) in Q1CY23 compared to 3.37 mnt in Q4CY22. Production edged lower by 2% y-o-y compared to 4.71 mnt in Q1CY22.
  
  
• Steel sales up: Steel sales volumes stood at 4.70 mnt in Q1CY'23, an increase of 20% q-o-q compared to 3.92 mnt in Q4CY22. Sales dropped by 5% y-o-y compared to 4.96 mnt in Q1CY22.
  
  

Financial results (consolidated):

Revenue increases q-o-q: The company's revenue increased by 7% to KRW 6,389 billion ($4.77 bn) in Q1CY23 as against KRW 5,980 billion ($4.47 bn) in Q4CY22. However, revenue declined by 8% y-o-y compared with KRW 6,980 billion ($5.22 bn) in Q1CY22.

Outlook for CY23

Investments in the construction sector are expected to decrease by 7.5% to KRW 207 trillion 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 3.7 million units in 2022 as supply issues ease.

Shipbuilding is expected to increase by 9% to 38.7 million CGT due to increase in backorders mainly from LNG ships.

Iron ore prices are expected to remain weak due to dissatisfied China's demand recovery. Also, coking coal prices are expected to remain weak as Australia solved rain-led supply disruptions.

The company aims to achieve net-zero emissions by 2050 as eco-friendly steel company.