SeAH Besteel, 3Q Operating Profit 65.2 Billion Won... Turned to Profit YoY

Increased Demand for Automotive, Construction, and Heavy Equipment Special Steel After COVID-19

[Asia Economy Reporter Hwang Yoon-joo] SeAH Besteel has succeeded in turning a profit as demand for special steel recovered after COVID-19.

SeAH Besteel announced on the 28th that its operating profit on a consolidated basis for the third quarter of this year was 65.2 billion KRW, turning profitable compared to the same period last year. During the same period, sales increased by 58.7% to 907.4 billion KRW, and net profit also turned positive to 51.5 billion KRW.

SeAH Besteel explained, "The production volume of front industries such as automobiles and construction heavy equipment, which had been stagnant due to COVID-19, rebounded this year, increasing demand for special steel products. As a result, sales volume of special steel products increased, significantly improving performance."

SeAH Changwon Special Steel recorded an operating profit of 32.3 billion KRW, up 415.7%, sales of 366.7 billion KRW, up 41.4%, and net profit of 24.6 billion KRW, up 575%.

Currently, the special steel market faces concerns about steel demand due to the rising possibility of bankruptcy of China's Evergrande Group, worsening power shortages, and pressures from US tapering and inflation. However, the industry is optimistic about sales recovery starting in October with the entry into the second half peak season, signs of easing semiconductor supply for automobiles, and the start of shipbuilding orders.

SeAH Besteel forecasted, "As China, the world's largest producer, is expected to strengthen steel production cuts, the import volume of special steel is likely to continuously decrease. Meanwhile, scrap steel (raw material) prices are expected to remain stable entering the winter season, and steel prices are expected to be maintained due to reduced supply from China's production cuts, raising expectations for expanded operating profit."