Hyundai Steel profit plunges on demand downturn
Hyundai Steel, South Korea’s second-largest steel producer, said on Friday that its net profit plunged 84 percent in 2025 from a year earlier, hurt by a prolonged downturn in the construction sector and rising global protectionism.
Net profit fell to 1.4 billion won ($970,000) from 8.8 billion won a year earlier, the company said in a press release, News.Az reports, citing Yonhap.
“A prolonged slump in the construction industry and growing protectionism, including U.S. import tariffs, weighed on earnings,” a company spokesperson said.
The U.S. currently imposes tariffs of up to 50 percent on steel products imported from South Korea.
Despite the sharp drop in net profit, operating profit rose 37 percent to 219.2 billion won from 159.5 billion won over the same period. Sales, however, declined 2.1 percent to 22.73 trillion won from 23.22 trillion won.
The company said higher sales of premium products and government measures aimed at limiting an influx of low-priced steel imports helped support operating profit.
To further improve profitability, Hyundai Steel plans to begin mass production of third-generation advanced high-strength steel (AHSS) in the first quarter and expand supplies of thick steel plates used for offshore wind power facilities and nuclear reactors later this year.
Hyundai Steel is also constructing a 2.7 million-ton-per-year electric arc furnace (EAF) steel mill in Louisiana, scheduled for completion by 2029. The facility will supply automotive steel to U.S. plants operated by its affiliates Hyundai Motor Co. and Kia Corp..
The company said it aims to begin construction of the plant in the third quarter and start commercial production in the first quarter of 2029. Hyundai Steel announced the $5.8 billion investment plan in March last year as part of Hyundai Motor Group’s broader U.S. investment strategy.
By Nijat Babayev
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