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S.Korea's POSCO Q2 profit soars on strong steel demand recovery

Posted on 22 July 2021

South Korean steelmaker POSCO posted on Thursday a record quarterly profit, as strong industrial demand and surging steel prices boosted its revenue.

The world’s sixth-biggest steelmaker by revenue, as of 2020, said its consolidated operating profit came in at 2.2 trillion won ($1.91 billion) for April-June, matching a company forecast made earlier this month, and slightly beating market consensus of 2.1 trillion won, according to Refinitiv Smartestimate.

POSCO reported about 170 billion won in operating profit a year earlier when sales were affected by the coronavirus pandemic, while the company’s second-quarter revenue rose 33% to 18.3 trillion won.

Analysts expect steel demand to outpace supply in major markets such as the United States and Europe, driven by plans to boost infrastructure spending and cut carbon emissions, in the second half of this year, bolstering steel prices.

POSCO shares rose 2.7% after the quarterly numbers were published, while the wider market gained 1%.

Source : Reuters