Hyundai Steel to Retain Production Target Despite Weak Demand

Hyundai Steel Co. announced that it would not stop operating a blast furnace to reduce steel production despite weak demand.

Chief executive Ahn Tong-il expects a turnaround beginning the fourth quarter of this year.

The company had already reduced its annual production target of hot-rolled coils from its electric arc furnace from the 1 million tons to 700,000 tons.

Hyundai Steel, South Korea's second-largest steelmaker, has three blast furnaces and an electric arc furnace at its steel mill in Dangjin.

The company's steel production in the first quarter amounted to 5.09 million tons, down by 1.1 percent on-quarter and by 4.5 percent on-year.

Hyundai Steel posted a net loss of 88.6 billion won in the first quarter due to sluggish operations in China, shifting from a net profit of 94.4 trillion won from the previous year.

Its steel sales volume totaled 5.08 million tons in the first quarter, sliding by 0.9 percent on-quarter and by 3.1 percent on-year.