South Korea’s Hyundai Steel has reported KRW4.11tn ($344bn) of sales revenue in Q2 2020, down by 26pc from the prior year. The steelmaker expects profits to improve gradually with the recovery of global automobile production in the second half of 2020.

 

Stagnated steel demand from automobile and shipbuilding industries due to the COVID-19 pandemic impacted Hyundai Steel’s Q2 sales and financials, according to the company’s earnings statement. Hyundai Steel’s operating profits in the quarter were supported by steel bars and beams used for construction despite an overall sluggish plates demand.

 

The steelmaker has optimised its EAF production by shifting focus on bar-shaped steel products in sync with the construction market demand and is responding to orders for low-cost distribution.

 

Hyundai Steel targets to secure profitability through optimal sales management based on demand in the future. It will focus on sales of long products including H-beam. The company is continuously striving to strengthen the supply of global automotive steel sheets by product development and developing high-formability outer shell materials for railways.

 

The company expects profits to gradually improve with rising auto steel plate demand and by reducing deficits in the low-margin sector. Hyundai Steel’s operating profits fell by 94pc in Q2 from the prior year quarter to KRW14bn and incurred a net loss of KRW12.9bn in the quarter.

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