South Korean steel company POSCO reduced its steel production by 1.1% year-on-year to 33.17 million tons in 2024, according to a report by SteelOrbis. The company also saw a 1% decline in rolled steel sales, amounting to 32.8 million tons.
The decrease in production and sales was attributed to the reconstruction of blast furnaces. Despite weak global demand, sales of high value-added products increased. POSCO's operating profit for 2024 was KRW 2.17 trillion ($1.5 billion), down from KRW 3.53 trillion in 2023. Sales revenue decreased by 5.7% year-on-year to KRW 72.68 trillion ($50.25 billion), and net profit dropped by 48.6% year-on-year to KRW 948 billion ($655.55 million).
To address the market downturn, POSCO Holdings plans to continue its restructuring efforts, including the sale of low-margin and non-core businesses. During a conference call, company executives discussed potential expansion into the US steel market and possible import tariffs on its products in Mexico. While POSCO Holdings' shipments to the US currently stand at 100 thousand tons, the company is exploring investment opportunities in the US mining industry, though it remains cautious due to market volatility.
Additionally, POSCO and India's JSW Steel plan to jointly invest 650 billion rupees ($7.73 billion) in constructing a steel plant in Odisha, India. The plant, with an initial capacity of 5 million tons per year, aims to capitalize on the growing steel market in India.
