Weak Demand Costs SK Steelmakers Weaker Q1 Profits

South Korean steelmakers are expected to report weak first-quarter earnings, as the industry continues to face difficulties in the global market and rising raw material prices, according to a market analysis reported by Chang Dong-woo for Yonhap News Agency.

Industry leader POSCO Holdings is expected to report an operating profit of 604.3 billion won (US$436.3 million) during the January-March period, down 14.3% from last year. I Photo: POSCO Future M

According to the analysis by Yonhap Infomax of securities firms' forecasts over the past three months, industry leader POSCO Holdings is expected to report an operating profit of 604.3 billion won (US$436.3 million) during the January-March period, down 14.3% from last year.

Sales are projected to decrease by 1.2% to 19.2 trillion won.

Eugene Investment & Securities expects POSCO's quarterly profit to shrink due to the rise in global iron ore and raw material prices since the second half of last year. Hyundai Steel Co., South Korea's No. 2 steelmaker, is also expected to report a 66% decline in operating profit to 113.6 billion won.

The company's sales are forecast to dip 1.3% to 6.3 trillion won. Market watchers also project weaker performances by Dongkuk Steel Mill Co. and SeAH Steel Holdings for the period.