Posted on 30 Mar 2015
Hyundai Steel is expected to record all time high results
for Q2. This is largely because the price of automotive steel has frozen and
the housing business recovery would bring positive effects to the steel sector.
HMC Investment Securities said that Hyundai Steel’s operating profits for Q2
will reach KRW 482.6 billion surpassing the figure for Q4 last year, which was
the highest in history. The annual operating profit this year will rise 18%
from last year.
Even though the price of raw materials, including iron ore, is weak, Hyundai
Steel is expected to see the improvement of its performance due to the price
freeze of automotive steel this year.
The industry believed that Hyundai Steel, which is the country’s leading steel
company, will be positively affected, as the housing business has recovered.
Mr Park Hyun wook, an analyst at HMC Investment Securities said that “The
supply of housing has increased in Korea this year since the second half of
last year. Accordingly, the performance in the steel sector is expected to
improve. As the housing provision this year has increased 74% from last year,
the demand for steel in Q2 will gradually improve. Therefore, the result will
considerably recover in the second half of the year.”
