Posco, South Korea’s biggest steelmaker by output, reported a 58% decline in third-quarter profit, worse than analysts estimated, following currency losses and as slowing global demand eroded prices.
Group net income, excluding minority interests, was 237.8 billion won ($225 million) in the three months ended Sept. 30 from 567.1 billion won a year earlier, Pohang-based Posco said today in a regulatory filing. That fell short of the 477.5 billion won average of 16 analyst estimates compiled by Bloomberg. Sales rose 7.4 percent to 16.3 trillion won.
Slowing economic growth in China, which makes up half of the world’s steel demand, continued to sap the nation’s consumption of the alloy this year. Bloomberg News said.
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 ($136.77) and a low price of CNY 830.00 ($135.14) per dry metric ton. The price of Chinese HRC continues hovering around CNY 3,030 ($493.34) 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 ($226.32) per metric ton.
Also on the LME, the steel billet cash price saw little change in its price on Wednesday at $465.00 per metric ton. The 3-month price of steel billet continues hovering around $455.00 per metric ton on the LME for the fifth day in a row.
The US HRC futures contract 3-month price remained essentially flat at $618.00 per short ton. The US HRC futures contract spot price saw little movement on Wednesday, closing out around $642.00 per short ton.