The company attributed the profit drop to a weaker won and higher raw material prices. It said operating profit is expected to gradually rebound from the second quarter as fewer low-priced imported products enter the domestic market, improving supply and demand, and as price increases for key products take effect.
Hyundai Steel also said increases in borrowings and its debt ratio were temporary, citing investment spending for future growth, including capital contributions to its U.S. steel mill.
Despite a challenging business environment, the company said it will prioritize profitability improvement this year and focus on securing new demand.
It said it aims to win new orders and move early in the power infrastructure sector at home and abroad, respond to growing demand for energy storage systems, and build a response system for all transmission-tower products, including structural steel and heavy plate, in line with a government-led domestic power-grid infrastructure buildout. The company said it is expanding orders for steel used in transmission towers.
Hyundai Steel said it is mass-producing low-carbon steel sheet that cuts carbon emissions by 20% and plans to lead the low-carbon market by pursuing additional steel-grade certifications to expand global sales.
A Hyundai Steel official said the company will seek to capture new demand in the power infrastructure industry, actively respond to demand for low-carbon steel through an electric-arc furnace and blast-furnace hybrid process, and improve profitability.
* This article has been translated by AI.
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