POSCO reduced steel production by 1.1% y/y in 2024

South Korean steel company POSCO reduced steel production by 1.1% yoy to 33.17 million tons in 2024. This is reported by SteelOrbis.

Sales of rolled products in the period decreased by 1% yoy to 32.8 million tons.

The decline in production and sales was due to the reconstruction of blast furnaces. However, sales of high value-added products increased despite weak global demand.

POSCO’s operating profit in 2024 amounted to KRW 2.17 trillion ($1.5 billion), compared to KRW 3.53 trillion in 2023. Last year, sales revenue decreased by 5.7% year-on-year to KRW 72.68 trillion ($50.25 billion), and net profit decreased by 48.6% year-on-year to KRW 948 billion ($655.55 million).

According to Korean media reports, in order to overcome the current market downturn, POSCO Holdings plans to continue its restructuring efforts this year, including the sale of low-margin and non-core businesses.

During the conference call, the company’s executives also commented on the possibility of the company’s potential expansion into the US steel market and possible import tariffs on its products in Mexico. POSCO Holdings’ shipments to the US currently amount to only 100 thousand tons, which minimizes the impact. However, the company admitted that it is considering options for investing in the mining industry in the United States. However, the company remains cautious about this due to market volatility.

As GMK Center reported earlier, India’s JSW Steel and South Korea’s POSCO intend to jointly invest 650 billion rupees (about $7.73 billion) in the construction of a steel plant in the eastern Indian state of Odisha. The plant, with an initial capacity of 5 million tons per year, will be part of their strategy in the country’s growing steel market.