As of the 23rd, industry officials said the country’s three major steelmakers — POSCO Holdings, Hyundai Steel and Dongkuk Steel — held up relatively well in the first quarter despite weak demand and external pressures.
Hyundai Steel reported 15.7 billion won ($11.3 million) in operating profit on a consolidated basis, swinging to a profit from a 19.0 billion won loss a year earlier. The turnaround was attributed to stronger domestic pricing power after anti-dumping steps against low-priced Chinese steel, along with a sharp rise in rebar exports, mainly to the U.S. market.
Dongkuk Steel also benefited from exports. On a separate basis, it posted 21.4 billion won in operating profit, up 403.9% from a year earlier. While the domestic long-steel market remained weak, overseas sales expanded for products including heavy plate and color-coated steel sheet.
POSCO Holdings, which has yet to report, is expected to post 594.9 billion won in first-quarter operating profit, up 4.7% from a year earlier, according to market estimates.
The results have fueled views that pressures from the construction slump and China-driven oversupply that persisted through last year are easing somewhat. Analysts also pointed to the government’s anti-dumping probes and stronger trade responses as creating a more favorable environment for domestic producers.
The Ministry of Trade, Industry and Energy is imposing anti-dumping duties of 27.91% to 38.02% on Chinese heavy plate. For hot-rolled steel sheet from Japan and China, duties range from 31.58% to 33.43% for Japanese products and 28.16% to 33.10% for Chinese products. Prices for key steel products such as hot-rolled sheet, rebar and heavy plate have reportedly risen by more than 100,000 won per ton in recent weeks.
A continued decline in China’s crude steel output has also been supportive. China’s National Bureau of Statistics said first-quarter crude steel production totaled 247.55 million tons, down 4.6% from a year earlier, the lowest first-quarter level since 2022.
Risks remain. If Middle East tensions persist, a weaker won and higher ocean freight rates could lift costs. A renewed rise in iron ore and coking coal prices could also squeeze margins. In addition, tougher environmental rules such as the EU’s Carbon Border Adjustment Mechanism, or CBAM, are seen as a burden for South Korean steelmakers with high export exposure.
Steelmakers say they plan to keep improving results in the second half by expanding exports and cutting costs.
POSCO plans to expand investment in overseas steel plants to build local production that reduces costs and tariff burdens. POSCO Holdings has agreed to set up a joint venture with Indian steelmaker JSW Steel and build an integrated steel mill in Odisha state by 2031, aiming to secure annual crude steel capacity of 6 million tons.
Hyundai Steel said it plans, in cooperation with Hyundai Motor Group and POSCO Holdings, to build an integrated electric-arc-furnace steel mill in Louisiana by 2029 with annual capacity of 2.7 million tons.
Hyundai Steel also plans to target steel demand tied to power infrastructure and data centers at home and abroad, citing expanding downstream industries such as data centers, energy storage systems and transmission networks as artificial intelligence demand grows.
Dongkuk Steel said it will continue raising the share of export sales, aiming to increase it to 15% this year from about 11% last year by strengthening capabilities including integrated sales, trade and logistics operations.
* This article has been translated by AI.
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