A summary of the steel segment of South Korean mill Posco's earnings report for the second-quarter ended June 30, released on Tuesday July 21.
In brief
Operating loss of 197 billion Won ($165 million) recorded for April-June, compared with an operating profit of 805 billion Won in the same period of last year.Overseas steel businesses incurred an operating loss of 93 billion Won, compared with an operating profit of 38 billion Won a year earlier.Sales fell by 11% in second quarter due to lockdowns imposed in major markets to contain the spread of Covid-19 weakening downstream demand and prices.Restart of No3 blast furnace in Gwangyang delayed to July from June; hot metal ratio to be adjusted.Posco not expecting domestic automotive industry to recover fully in third quarter, although some car producers expected to increase operating rates in middle of quarter.Domestic sales increased in response to trade barriers in major countries.Steel imports from Japan and China totaled 4.3 million tonnes in the first half of 2020, compared with 5.1 million tonnes a year earlier. It is replacing imports from China and Japan with tailored solutions to domestic clients.Sales of automotive and solar power structural steel amounted to 4 million tonnes in first half; Posco aims to sell 6.3 million tonnes in second halfAutomotive steel sales alone totaled 3.1 million tonnes in first half; it expects to sell 3.8 million tonnes in second half.
Key figures
Carbon steel production
Total: 7.46 million tonnes, down 11% from 8.39 million tonnes a year earlier
Steel sales
Total: 7.76 million tonnes, down 11% from 8.75 million tonnes a year earlier
Domestic: 4.23 million tonnes, down 16% from 5.02 million tonnes a year earlier
Exports: 3.53 million tonnes, down 5% from 3.72 million tonnes a year earlier
Steel inventory1.12 million tonnes, down 8% from 1.22 million tonnes a year earlier