Hyundai Steel Swings to Operating Loss in Q1... Revenue at 5.5 Trillion KRW

Steel Market Downturn and Impact of Labor Union Strikes

Hyundai Steel has turned to a large operating loss in the first quarter of this year, affected by the downturn in the steel market and the aftermath of strikes by its labor union.

On April 24, Hyundai Steel announced that it recorded an operating loss of 19 billion KRW on a consolidated basis in the first quarter of this year. Operating profit shifted from a surplus of 55.8 billion KRW in the previous year to a loss. Revenue stood at 5.5635 trillion KRW, down 0.9% from the previous quarter, and net loss for the period was 54.4 billion KRW. The company attributed these results to the decline in the steel market caused by sluggish demand industries such as the construction sector, as well as a decrease in product sales volume due to frequent strikes by the labor union.

Newly Updated Hyundai Steel CI

Hyundai Steel stated, "Although the market remains sluggish due to decreased demand for steel products, we expect the global steel supply and demand situation to improve with the implementation of economic stimulus measures in China and steel production cuts within China." The company added, "In the domestic market, the imposition of anti-dumping duties is expected to reduce imports of low-priced steel sheets, and with production cuts and the arrival of peak season for long steel products, sales are expected to rebound. As a result, we anticipate a gradual recovery in performance starting from the second quarter."

Previously, Hyundai Steel announced last month its investment in an electric arc furnace integrated steel mill in Louisiana, USA. This steel mill will have an annual capacity of 2.7 million tons and will be equipped with a Direct Reduction Plant (DRP) for direct reduced iron production, as well as electric furnaces, continuous casting, and rolling facilities. Through this investment, Hyundai Steel aims to secure future growth engines. Additionally, the company plans to supply automotive steel sheets for strategic models of global automakers, including Hyundai Motor and Kia, and to produce and supply products that meet customers' needs for low-carbon materials.

Hyundai Steel considers the U.S. steel market a strategic market with high profitability potential. Through the establishment of this local production base, the company expects to achieve multiple benefits, including expanding sales of high value-added automotive steel sheets, responding to trade risks, and establishing a low-carbon production system. A company representative emphasized, "By producing low-carbon automotive steel sheets at the U.S. electric arc furnace steel mill that match the quality level of existing blast furnace products, we will restructure our product portfolio to focus on high-profit, high value-added products, secure a stable revenue base, and concentrate on improving profitability."