South Korean steelmaker POSCO announced that its crude steel production decreased by 0.8% to 9.23 million tons in the third quarter of 2024 compared to the same period of the previous year. This figure was recorded as 9.31 million tons in 2023. This decrease in production highlights the impact of challenges such as oversupply in the global steel sector, decreasing demand in the Chinese market and restrictions on exports.
Similarly, the company's steel product sales also decreased in the third quarter. Sales volume, which was 8.38 million tons in the same period of 2023, decreased by 1.6% to 8.25 million tons in 2024. Weak demand and decreasing sales volume had a negative impact on the company's profitability.
Despite these challenging market conditions, POSCO continued to maintain its global presence by continuing to export sheet metal and steel raw materials, especially to the European and Asian markets. The company plans to increase its investments abroad in line with its goal of expanding its global steel operations. In this regard, POSCO signed a memorandum of understanding with India-based JSW Steel on October 21, 2024, to set up an integrated steel plant with an annual capacity of 5 million tons. The plant is planned to be set up in the state of Odisha or elsewhere.
POSCO’s total crude steel production during January-September 2024 decreased by 2.9% to 25.9 million tons compared to 26.66 million tons in the same period of the previous year. This amount constitutes 72.6% of the company’s total production of 35.69 million tons in 2023.
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