South Korea’s POSCO Q2 profit soars on strong recovery in steel demand

Adds details on earnings

SEOUL, July 22 (Reuters)South Korean steelmaker POSCO 005490.KS posted a record quarterly profit on Thursday, as strong industrial demand and soaring steel prices boosted revenues.

The world’s sixth-largest steelmaker by revenue, in 2020, said its consolidated operating profit was 2.2 trillion won ($ 1.91 billion) for April-June, matching forecast of the company made earlier this month and slightly exceeding the market consensus of $ 2.1 trillion. won, according to Refinitiv Smartestimate.

POSCO reported operating profit of around 170 billion won a year earlier when sales were affected by the coronavirus pandemic, while the company’s second-quarter revenue increased 33% for reach 18.3 trillion won.

Analysts expect demand for steel to exceed supply in major markets such as the United States and Europe, driven by plans to increase infrastructure spending and cut emissions from carbon, in the second half of this year, boosting steel prices.

POSCO shares rose 2.7% after the release of quarterly figures, while the broader market .KS11 gained 1%.

($ 1 = 1,151,6,400 won)

(Reporting by Joyce Lee; Editing by Tom Hogue and Sherry Jacob-Phillips)

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