South Korean steelmaker Posco’s crude steel production declined by 4pc or 340,000mt in the March quarter (Q1) from a year ago due to revamping of Gwangyang #3 blast furnace and maintenance of downstream mills, according to a company release.
Crude steel production dropped by 4pc to 9.06mn from the year prior and down by 6pc from the prior quarter. Production of steel goods have also declined by 4pc to 8.72mn mt from the year prior and slid 3pc from the prior quarter.
| Production (000′ mt) | Q1 2020 | Q1 2019 | Change (%) | Q4 2019 | Change (%) |
| Crude Steel | 9,066 | 9,406 | -4 | 9,602 | -6 |
| Product | 8,723 | 9,040 | -4 | 8,966 | -3 |
The company’s sales declined by 7pc to 8.62mn mt from the year prior and down 4pc from the prior quarter. Sales have taken a hit due to blast furnace revamping. The company’s product inventory stood at 1.10mn in Q1, with no change from the previous quarter end.
The company’s revenue in Q1 was KRW6,970bn ($5.6bn), down by 11pc from the year prior and 5pc from the previous quarter. The company’s operating profit, however, increased by 26pc to KRW458bn from the prior quarter on the back of declining raw material prices despite diminishing sales and falling price as the demand declined. Company’s net profit was KRW453bn, down by 32pc from the year prior.
($1=KRW1,233)