South Korea’s Dongkuk production rose by 9.4pc to 1mn mt of rebar and section, increased by 8.8pc to 405,000mt of cold-rolled, and climbed by 6.1pc to 184,000mt of steel plate in Q2 2021 against the same quarter last year.
The company’s sales of rebar and sections rose by 12.3pc to 1mn mt, cold-rolled grew by 10.5pc to 432,000mt, and steel plate climbed by 4.6pc to 184,000mt in Q2 2021 compared to the same year-ago quarter. The rise in sales in the quarter was attributed to the increased demand in construction. Cold rolled production and sales grew sequentially between Q2 2020, Q1 2021 and Q2 2021 but rebar and sections production and sales were lower in the Q1 2021 period against Q2 2020 figures.
Revenue
Dongkuk’s revenue climbed by 39.6pc to KRW1.82tr ($1.56bn) in Q2 2021 compared to KRW1.3tr in the same year-ago quarter. Operating income of 207bn in Q2 2021 more than doubled the 99bn in the same quarter last year. EBITDA grew by 86.9pc to KRW256bn in Q2 2021 against 138bn in the same quarter in 2020. Net income more than doubled to KRW147bn in Q2 2021 against KRW62bn in the prior year’s period.
In H1 2021, rebar and sections led revenue contribution at 51pc with cold-rolled at 35pc, steel plate at 11pc, and other at 3pc. In 2020 and 2019, rebar contributed at 49pc and 51pc of total revenue as cold-rolled contributed at 34pc and 32, respectively.
Average distribution price of rebar in June 2021 grew by 92pc against the same month last year as H-beam average price rose by 71pc in the same timeframe. Imported scrap price based on Japanese H1 rose by 92pc in June 2021 compared to 12-months ago.
CSP
Brazil’s Companhia Siderúrgica do Pecém (CSP) achieved an operating income climbed 35.7pc to KRW209bn in Q2 2021 compared to the prior quarter. Slab production rose by 6.2pc to 733,000mt in Q2 2021 against the preceding quarter, with slab sales up by 11.4pc in the same time comparison. CSP is a joint venture between Vale and Dongkuk.
($1=KRW1170.4)