South Korea: POSCO's steel production, sales decline y-o-y in Q2CY'24

South Korean steel giant, POSCO, released its second quarter of calendar year 2024 (Q2CY'24) results. The company's annual crude steel production and sales volume showed downtrend y-o-y.

The company's production and sales dipped due to Blast Furnace (BF) refurbishment, yet operating profit (OP) climbed due to higher mill margins. Infra and construction revenue soared, fuelled by large project advancements, leading to overall quarterly revenue growth.

1) Crude steel production decreases y-o-y: The company's crude steel production stood at 8.001 million tonnes (mnt) in Q2CY'24, dropped by 10% y-o-y as compared to 8.851 mnt in Q2CY'23. Moreover, on q-o-q basis the same declined by 8% from 8.661 mnt in Q1CY'24.

2) Sales dropped y-o-y: The company's sales fell by 7% y-o-y to 7.858 mnt in Q2CY'24 against 8.482 mnt in Q2CY'23. Furthermore, the same decreased by 5% q-o-q compared to 8.229 mnt in Q1CY'24.

Other highlights

Revenue decreases y-o-y: The company's revenue for steel sales in Q2CY'24 decreased by 8% y-o-y reaching KRW 18,510 billion ($14 billion) from KRW 20,121 billion ($15 billion) in Q2CY'23. Whereas, the same increased by 3% q-o-q from KRW 18,052 billion ($13 billion) in Q1CY'24.

POSCO International's performance: POSCO International reported rise in steel revenue at KRW 8,282 billion ($6 billion) in Q2CY'24, up by 7% q-o-q compared to KRW 7,761 billion ($6 billion) in Q1CY'24. Additionally, operating profit in Q2CY'24 rose by 32% q-o-q to KRW 350 billion ($0.25 billion) from KRW 266 billion ($0.19 billion) in Q1CY'24.