South Korean company POSCO Holdings reported that the shutdown of its second largest plant resulted in a 71 percent drop in revenue, forecasting that weak steel demand will continue in the first half of next year. The decline is due to weaker global steel demand due to rising inflation, interest rates and the downturn in the Chinese real estate market.
POSCO's steel division's operating margin fell to 3.6% QoQ from 20.3% YoY due to flood losses at its South Korea Pohang plant after the typhoon last month.
The plant has not yet returned to full production, but POSCO said it plans to resume deliveries of all its processed products until the end of the year.
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