South Korean steelmaker Hyundai Steel's third-quarter sales volumes for both long and flat products fell on the year by 14pc and 9pc to 1.2mn t and 2.7mn t, respectively.
Sales to automotive customers, part of the flat segment, also declined on the quarter by 2pc to 1.2mn t.
Earnings still rose by 3pc on the year to 5.9 trillion South Korean won (almost $4.4bn), despite lower sales volumes.
Profitability improved from the previous quarter as higher selling prices for key products helped to offset cost pressures, despite lower sales volumes, according to the steelmaker. But third-quarter operating profit was 7pc lower on year at W87bn. Net profits rose on the year to W84bn from W18bn.
This likely indicates higher costs for the steelmaker, which are eating into its margins.
Looking ahead, the steelmaker projects hot-rolled coil (HRC) prices to slightly weaken because of subdued demand. Decreases are also expected on long products, but at a lower pace as markets deal with softer demand, owing to seasonal factors.
Metallurgical coal prices rose on supply disruptions in China before declining again because of weak demand, Hyundai said. Iron ore is projected to follow suit, pressured by weak demand and high inventories. On scrap, lower levels will be driven by major steelmakers' price cuts and weaker downstream demand, the producer said.
The company highlighted progress on its electric-arc furnace project in the US state of Louisiana, with commercial production targeted for 2029 as part of its strategy to expand automotive-grade and low-carbon steel production.
