If we look at the official financial statements comprehensively, we can see the following: the company's profit decreased by 20 percent compared to the same period last year.
On the morning of July 20 in Pohang, the South Korean steel giant reported an increase in operating profit of nearly 45 percent over the same period last year. The gross profit is 980 billion won, which translates into dollars of about 873 million.
However, if we look at the data for the first quarter, it will be clear from the numbers that the profit margin POSCO decreased by 30 percent, and profitability fell from 10 to 5 (all this compared to 2016) ... Despite leapfrogging its quarterly numbers, the Korean giant's revenue grew 3 percent to 17 trillion won. Some tension in the region, created mostly by the closest neighbors in the north, affected the financial performance of the South Koreans.
The Asian region never ceases to amaze us for many years now. So, stock exchange quotations of steel products in the Middle Kingdom increased by 35 percent, at some point analysts around the world with bated breath were waiting for a rise to the highest level, and this is December 2013. In recent months, Beijing has been trying by all means to reduce the surplus of supply on the world market for steel and, in particular, steel reinforcement.
Growth in prices for ferrous metal products in the third quarter is not expected, so the operating profit of the Korean company may fall sharply. Official sources close to the company's management say that soon there may be difficulties with the export of steel to the United States.
All this cannot but affect the investment climate, which, to put it mildly, is becoming less attractive, especially for domestic companies. Supplies of refractory metals from Russia to Korea by Ural-Metal may be frozen indefinitely. Tantalum , tungsten and molybdenum will have to be redirected to the domestic market.
