South Korea-based Hyundai Steel expects its sales volumes to fall by 1.7pc or 330,000mt in 2021 to 19.3mn mt in 2021 from 19.7mn mt in 2020 as it streamlines its product divisions. In 2021, blast oven furnace (BOF) production is forecasted at 11.4mn mt while electric arc furnace (EAF) production is slated to dip by 2.6pc to 7.9mn mt.
The company will focus on increasing premium product sales through 2021, which includes high strength rebar, ultra-thick plate and high strength auto sheet that will serve growing demand in electric vehicles. It expects profits to improve in 2021 on better demand and improved production rates.
Hyundai’s crude steel production decreased by 2.6pc to 19.1mn mt in 2020 from 21.2mn mt in 2019. BOF production declined by 6.3pc to 11.1mn mt while EAF volumes fell by 15pc to 8mn mt in 2020, against the year-ago figures. Sales volumes dropped by 7.7pc to 19.7mn mt in 2020 from 21.3mn mt in 2019.
Hyundai Steel’s consolidated sales revenues fell by 12.1pc to KRW18tr ($160.8mn) in 2020 from KRW20.5tr the previous year. The company posted a net loss of KRW440bn in 2020 compared with a narrow net profit of KRW26bn in 2019, primarily driven by reduced automotive, industrial, and steel sales in H1 2020, impacted by the COVID-19 pandemic.