South Korean steelmakers are expected to report weak first-quarter earnings, as the industry continues to face difficulties in the global market and rising raw material prices, a market analysis showed Sunday.

According to the analysis by Yonhap Infomax of securities firms’ forecasts over the past three months, industry leader POSCO Holdings is expected to report an operating profit of 604.3 billion won (US$436.3 million) during the January-March period, down 14.3 percent from last year. Sales are projected to decrease by 1.2 percent to 19.2 trillion won.

Eugene Investment and Securities expected POSCO’s quarterly profit to shrink due to the rise in global iron ore and raw material prices since the second half of last year.

Hyundai Steel Co., South Korea’s No. 2 steelmaker, is also expected report a 66 percent decline in operating profit to 113.6 billion won. The company’s sales are forecast to dip 1.3 percent to 6.3 trillion won.

Market watchers also projected weaker performances by Dongkuk Steel Mill Co
. and SeAH Steel Holdings for the period.

Despite current difficulties, industry observers anticipate the domestic steelmakers to see a rebound in performance in the near future based on improved global economic conditions and the pace of China’s economic recovery.

Source: Yonhap News Agency