S Korea POSCO Holdings sees record Q1 profit as Ukraine crisis drives up steel prices

SEOUL :South Korea's POSCO Holdings reported on Monday a better-than-expected 44 per cent surge in first-quarter operating profit as higher revenue from rising steel demand in the opening months of 2022 outpaced stiff raw material costs.

Global steel demand is projected to grow 2.7 per cent this year, higher than a 2.2 per cent estimate from October, but the forecast is subject to uncertainties amid record global inflation and the war in Ukraine, the World Steel Association said this month.

POSCO, the holding company of South Korea's largest steelmaker said consolidated operating profit, including earnings from POSCO International and POSCO Chemical, rose to a record 2.3 trillion won ($1.84 billion) in the January-March quarter from 1.6 trillion won a year earlier.

Analysts expected 1.72 trillion won in operating profit, according to Refinitiv SmartEstimate.