South Korea expects strong demand for steel in the fourth quarter

South Korean metallurgists expect steel demand to be solid during the fourth quarter amid lower production and demand in China.

As a result, the largest manufacturer Posco is expected to post consolidated annual sales of $ 64.8 trillion ($ 57 billion), up from a previous estimate of 64.1 trillion won in July. In 2017, the achieved income amounted to 60.7 trillion.

Production is expected to fall in China, driven by government policies to reduce pollution and overcapacity. Net income reached 1.058 trillion won in the third quarter, up 17% from a year earlier. “Steel demand in the construction and energy sectors was strong in the third quarter. Increase in capital share from PT Krakatau Posco also ensured quarterly results, ”it was reported.

Krakatau Posco is a 70/30 steel joint venture with Krakatau Steel in Indonesia, which is expected to begin construction in 2019 of a 1.2-1.5 million tonnes pa cold rolled mill plant for automotive steel production.

For 2018, Posco expects steel production to reach 37.7 million tonnes, 1.34% higher than in 2017, from 37.2 million tonnes.