South Korean steel giant Posco’s second-quarter profit missed analyst estimates after that nation’s largest steelmaker faced slumping global demand and prices.
Group net income rose to 511.2 billion won ($497 million) in the three months ended June 30 from 250.6 billion won a year earlier, Posco said, falling short of the 563.1 billion won average of 12 analyst estimates compiled by Bloomberg. Sales rose 7 percent to 16.7 trillion won.
While profit doubled, it came from a lower base. In the second-quarter last year, Posco booked a 283 billion won charge related to its foreign currency-denominated debt because of the won’s depreciation.
Chinese steel prices were flat for the day. The price of iron ore 58% fines from India hit a high price of CNY 840.00 ($135.41) and a low price of CNY 830.00 ($133.79) per dry metric ton. The price of Chinese HRC continues hovering around CNY 3,380 ($544.85) per metric ton for the fifth day in a row. For the fifth day in a row, the price of Chinese coking coal remained essentially flat at CNY 1,390 ($224.07) per metric ton.
The cash price of steel billet held steady on the LME at $420.00 per metric ton. For the fifth consecutive day, the 3-month price of steel billet held flat on the LME at $425.00 per metric ton.
The US HRC futures contract 3-month price remained essentially flat at $642.00 per short ton. The spot price of the US HRC futures contract saw little movement at $670.00 per short ton.