DESPITE GROWING RAW MATERIAL COSTS, SOUTH KOREA'S HOLDING BUSINESS REPORTS A 4.5 PERCENT DECLINE IN Q2 PROFITS

25 July, 2022 by
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Posco Holdings of South Korea reported a 4.5 percent decline in operating profit for the second quarter, in line with company projections, as raw material costs increased more quickly than the pricing of its steel products.

The holding company for South Korea's biggest steelmaker said that the quarter ending in April-June saw a decline in operational profit to KRW 2.1 trillion (USD 1.6 bln).

Although its steelmaking company Posco negotiated price increases with clients including shipbuilders and automakers, experts said the efforts were offset by the rising cost of coking coal, a necessary component for the manufacturing of steel.

Analysts also noted that Posco Holdings' operational profit for the third quarter is probably going to be lower than it was for the second quarter owing to expectations that demand would be sluggish and steel prices will decline as a result.

The materials and information on this article have been prepared or assembled by Viet Nam Steel and are intended for informational purposes only.


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