S. Korean steelmakers to post better Q3 records

SEOUL, Sept. 6 (Yonhap) -- South Korean steelmakers are expected to register
sharply improved performances for the third quarter amid growing signs of
recovering economic conditions at home and abroad, industry sources said Sunday.
The bright outlook comes after industry leader POSCO and other steelmakers have
been struggling since late last year, buffeted by soaring raw-material prices and
slumping overseas demand, especially from China.
According to analysts, POSCO's third-quarter operating profit could hover above 1
trillion won (US$805 million) for the first time in three quarters, with a median
forecast reaching 950 billion won.
POSCO's operating profit, which hit as high as 1.39 trillion won in the last
quarter of 2008, tumbled to 373 billion won in the first quarter of this year and
137 billion won in the April-June period.
Market watchers attribute POSCO's expected improvement in third-quarter
performance to falling materials costs and rebounding overseas demand.
"Our production cut has stopped, though output has yet to reach the level during
the third quarter of last year, when the industry hadn't met with a slump," a
POSCO official said.
Currently, POSCO's factories are running full tilt, while its capacity
utilization rate was 83 percent in the first half of this year.
Smaller rivals Dongguk Steel Mill Co. and Hyundai Steel Co. are also forecast to
record better third-quarter results.
Dongguk Steel Mill hopes to swing back to a profit for the first time in four
quarters, and Hyundai Steel's operating profit is likely to grow to around 150
billion won from 135 billion won in the second quarter, according to analysts.
(END)