SEOUL: South Korean steel maker POSCO reported yesterday that its net profit had more than tripled in the second quarter, thanks to strong prices for high-quality steel in a tight market.
Spot prices of steel products fell sharply during the quarter on slowing demand, but industry leaders like POSCO escaped unscathed by maintaining keen prices because the supply of high-quality products remained short.
POSCO, the world’s third largest steel maker behind Europe’s Arcelor and Japan’s Nippon Steel Co, posted 550 billion won (US$467.3mil) in net profit for the three months ended June 30, compared with a 168 billion won profit a year ago.
Turnover rose to 3.53 trillion won from 2.8 trillion previously.
POSCO said its average selling price during the January-June period this year was 18.7% higher than a year earlier.
For the six months to June, POSCO's net profit came in at 1.02 trillion won on sales of 6.79 trillion won, up 184% and 25% respectively from a year before. – Reuters