South Korea: POSCO's steel production rises 4% q-o-q in Q2CY23

South Korean steel giant, POSCO, released its Q2CY'23 results on 24 July'23. The company's quarterly crude steel production and sales increased q-o-q during the period under preview. Complete operational recovery post the floods led to improved production and sales volumes.

Operational highlights

1) Crude steel production increases 4% q-o-q: The company's crude steel production stood at 8.851 million tonnes (mnt) in Q2CY'23, up 4% as against 8.499 mnt a quarter ago. Moreover, on y-o-y basis too, production volumes increased 4% against 8.545 mnt in Q2CY'22.

2) Sales rise 2%: The company's sales rose 2% to 8.352 mnt in Q2 in comparison with 8.162 mnt in the previous quarter. On an annualised basis, sales inched up by 1% from 8.238 mnt in Q2CY'22.

Financial results:

Revenue increases 7%: The company's revenue from steel sales increased 7% to KRW 10,298 billion in Q2 from KRW 9,622 billion in the previous quarter. On an annual basis, revenue declined 13% from KRW 10,298 billion in Q2CY'22.

Krakatau POSCO: The joint venture between Krakatau and POSCO, Korea reported a significant rise in revenues and operating profits. Operational profits of the company rose from $53 million in Q1CY'23 to $58 million in Q2. Operating profit increased on the quarter due to increased sales after the commissioning of the new hot-rolling (HR) line and an increase in the share of profits from domestic sales. However, revenue declined by $35 million q-o-q from $651 million in Q1 to $616 million in Q2.

POSCO Maharashtra performance: POSCO's Maharastra-based unit recorded revenue at $341 million in Q2 against $335 million in Q1. Increased sales and prices in India helped boost revenues in the January-March period. Sales volume declined marginally to 0.352 mnt in Q2 against 0.363 mnt in the previous quarter.

POSCO International performance: POSCO International reported increase in steel revenues at KRW 8,865 billion, up 7% against KRW 8,306 billion in Q1CY'23. However, declined by 25% against KRW 11,747 billion. The steel major mentioned that its revenue increased q-o-q due to increased sales of high-profit steel products for wind and solar power.