South Korea: POSCO's steel production rises 5% q-o-q in Q3CY23

South Korean steel giant, POSCO, released its Q3CY'23 results on 24 October'23. The company's quarterly crude steel production increased q-o-q, while the sales remained largely stable during the period under preview.

1) Crude steel production increases 5% q-o-q: The company's crude steel production stood at 9.311 million tonnes (mnt) in Q3CY'23, up 5% as against 8.853 mnt a quarter ago. Moreover, on y-o-y basis too, production volumes increased by 5% against 8.857 mnt in Q3CY'22.

2) Sales largely stable q-o-q: The company's sales remained largely stable to 8.300 mnt in Q3 in comparison with 8.352 mnt in the previous quarter. On an annualised basis, sales inched up by 5% from 7.904 mnt in Q3CY'22.

Financial results:

Revenue declines q-o-q: The company's revenue from steel sales declined by 6% to KRW 9,675 billion in Q3 from KRW 10,298 billion in the previous quarter. On an annual basis, revenue fell by 11% from KRW 10,878 billion in Q3CY'22.

Krakatau POSCO: The joint venture between Krakatau and POSCO, Korea reported a significant decline in revenues and operating profits. Operational profits of the company decreased from $58 million in Q2CY'23 to $39 million in Q3. Moreover, revenue declined $35 million q-o-q from $616 million in Q2 to $581 million in Q3. Due to low demand, prices have fallen. To protect profits, domestic sales are being aggressively expanded.

POSCO Maharashtra performance: POSCO's Maharashtra-based unit recorded revenue at $331 million in Q3 against $340 million in Q2. Sales volume increased marginally to 0.365 mnt in Q3 against 0.352 mnt in the previous quarter. Weak market conditions led to lower prices, but expanding sales in the automotive sector helped to minimize the decline in profits.

POSCO International performance: POSCO International reported decline in steel revenues at KRW 8,046 billion, down 9% against KRW 8,871 billion in Q2CY'23. Moreover, the same declined by 20% against KRW 10,091 billion in Q3CY'22. In addition, the company also reported q-o-q decline in operating profit and sales. The steel major mentioned that its revenue decreased due to worsening global conditions.