South Korea’s POSCO produced 8.79 million mt of crude steel in the third quarter of 2025, down 4.8% year over year from 9.23 million mt, its parent POSCO Holdings said Oct. 27.
Amid the lower output, its steel product sales in Q3 dipped to 8.24 million mt against 8.25 million mt the year before.
“While sales this quarter decreased slightly compared to the previous quarter due to a decline in steel product sales prices, operating profit increased thanks to recovering utilization rates and ongoing efforts to strengthen cost competitiveness,” POSCO Holdings said.
“POSCO (on a separate basis) continues to strengthen its profitability, recording an operating profit of Won 585 billion ($408.46 million),” it said, up 33.6% compared with Won 438 billion the year before. POSCO’s Q3 net profit was at Won 423 billion, a 64.6% surge versus Won 257 billion earned the previous year.
Amid a price drop in steel products, lower raw materials cost continued to drive up operating margins, it said.
“Despite increasing management uncertainty, including the strengthening of protectionism in major global markets,” POSCO Holdings said its Q3 net profit increased “by Won 303 billion compared to the previous quarter, driven by the recovery in the steel business.”
“The steel business has been showing improvement in operating profit and net profit for three consecutive quarters since hitting a low in the fourth quarter of last year,” it said.
US tariffs of 50% on inbound steel and aluminum will continue to affect POSCO’s overseas steel business.
Also, the steelmaker will be affected by India’s 12% provisional safeguard duty on alloy and non-alloy steel flat products, which has been in effect for 200 days since April 21. The safeguard duty is likely to be extended as the Indian Directorate General of Trade Remedies (DGTR), on Aug. 16, recommended a three-year safeguard duty on flat steel products.
For FY2024-25, South Korea was the leading supplier of finished steel to India, at 2.81 million mt, up 5.3% year over year.
Platts, part of S&P Global Commodity Insights, assessed SAE1006 HRC at $465/mt FOB China on Oct. 24, down $14/mt week over week. The same grade of coil was $2/mt lower over the same period at $497/mt CFR Southeast Asia.
