Hyundai Steel announced on the 24th that its operating loss for the first quarter of this year was provisionally recorded at 19 billion won, marking a transition to a deficit compared to the same period last year.
During the same period, sales amounted to 5.5635 trillion won, a decrease of 6.5%, and net income recorded a loss of 54.4 billion won, down 86.6 billion won from a profit of 32.2 billion won in the same period last year.
Factors contributing to Hyundai Steel's poor performance include delays in the recovery of the steel market and strikes. The company explained, "The decrease in product sales was due to the stagnation in the steel market caused by the slowdown in demand industries such as the construction sector and the impact of strikes."
Hyundai Steel expects its performance to recover as the market improves due to production cuts in China and the provisional imposition of anti-dumping duties on Chinese hot-rolled plates. Additionally, it plans to secure future growth drivers through investments in U.S. steel mills.
Hyundai Steel envisions building a steel mill in the U.S. with an annual production capacity of 2.7 million tons and supplying automotive-grade steel plate to global automobile manufacturers.
A Hyundai Steel official noted, "We will produce carbon-reduced automotive steel plates that are comparable to blast furnace product quality at the electric arc furnace steel mill in the U.S. and will restructure our product portfolio to focus on high-revenue and high-value-added products," adding, "We will concentrate on securing a stable revenue base and improving profitability."