Hyundai Steel expects strong demand and prices to continue through 2021. Hyundai Steel plans to achieve manufacturing competitiveness thru investments in electric arc furnaces (EAFs) and invest in more hot-stamping as demand rises. Hyundai is focusing on ultra-strength auto-sheet and steel for LNG storage. The company is also enhancing market response by establishing management systems by product-based segment to adjust to market demand needs timely.
Hyundai Steel’s Czech hot-stamping plant investments will take approximately KRW21bn ($18.9mn) and is expected to commission the additional 1.6mn mt annually for mass production in March 2023, up from 3.2mn mt presently. Capital expenditures of KRW490bn ($440mn) are planned for environmental improvements in 2021-2025.
Sales volumes dropped by 3pc to 4.9mn mt in Q1 2021 against the same quarter last year with blast furnace staying close to production in the previous year-ago quarter at 3.1mn mt but electric arc furnace falling by 5.7pc to 1.7mn mt.
Crude steel production fell more dramatically by 11.6pc to 4.5mn mt in Q1 2021 compared to 5.1mn mt in the same year-ago quarter.
Steel revenue rose by 2.6pc to KRW4.3tr in Q1 2021 compared to the same year-ago quarter. Consolidated revenue rose by 5.5pc to KRW4.9tr in Q1 2021 as operating profit achieved KRW304bn from a loss of 30bn against the same quarter last year. Operating margin increased from -0.6p in Q1 2020 to 6.2pc in the latest quarter.
Revenue increased due to rising prices during the recovering global steel market. Production and sales volumes fell due to the streamlining of the business segments and seasonal effect. Profit levels recovered due to higher prices, operating cost reduction efforts, and withdrawal from low-profit sectors.