Ferrum Tower, headquarters of Dongkuk Steel Mill Group [Dongkuk Steel Mill Group]
Ferrum Tower, headquarters of Dongkuk Steel Mill Group [Dongkuk Steel Mill Group]

Dongkuk Steel Mill grew its operating profit by more than 50% in the second quarter, driven by improvements in its bar and section steel and thick plate segments. Despite a prolonged slump in construction activity, demand from large-scale industrial infrastructure projects — including semiconductor facilities and AI data centers — along with shipbuilding-related thick plate demand, underpinned the company's earnings.

Dongkuk Steel Mill disclosed Friday that its second-quarter standalone sales reached 995.5 billion won ($677 million), with operating profit of 45.6 billion won and net profit of 11.6 billion won.

Sales rose 11.4% from a year earlier, while operating profit surged 52.3% and net profit climbed 26.8% over the same period. Compared with the previous quarter, sales improved 16.1%, operating profit jumped 112.5%, and net profit advanced 87.6%.

For the first half of the year, the company posted cumulative sales of 1.85 trillion won, operating profit of 67 billion won and net profit of 17.9 billion won — up 14.4%, 96.1% and 53.5%, respectively, from a year earlier.

Bar and section steel led the earnings recovery. Seasonal peak demand in the second quarter, combined with sustained orders tied to large industrial infrastructure projects such as semiconductor plants and AI data centers, improved profitability in the company's core bar and section steel products. Higher sales volumes driven by its global export expansion strategy also contributed.

The thick plate segment also showed a partial recovery, with production and sales volumes improving on the back of steady shipbuilding demand. While the steel industry continues to face headwinds — including an influx of low-priced Chinese imports and weakening construction demand — orders from the shipbuilding and industrial infrastructure sectors have emerged as key earnings buffers for major steelmakers.

Dongkuk Steel Mill is also pushing to develop high-value-added products and diversify its sales channels. In the first half of this year, it developed new export specifications for structural steel sections and improved its manufacturing process for specialty thick plate products. The company also introduced the Korea Credit Guarantee Fund's "Pay One Guarantee" service on its steel e-commerce platform Steelshop, expanding available payment options.

Dongkuk Coated Metal, the Dongkuk Steel Mill Group's specialist in coated and color steel sheet, also returned to profit in the second quarter.

Dongkuk Coated Metal posted standalone second-quarter sales of 545.1 billion won, operating profit of 21.1 billion won and net profit of 14.6 billion won. Sales rose 8.6% from a year earlier, while both operating profit and net profit swung to positive territory. Compared with the previous quarter, sales grew 10.3%, operating profit rose 89.1% and net profit increased 41.1%.

For the first half of the year, Dongkuk Coated Metal recorded cumulative sales of 1.04 trillion won, operating profit of 32.3 billion won and net profit of 25 billion won. Sales edged up 1.1% from a year earlier, and net profit turned positive.

Profitability in the domestic market improved after the imposition of provisional anti-dumping duties on Chinese coated and color steel sheet in April reduced the supply of low-priced commodity products. Maintaining a high export share for premium products such as Luxsteel and Appsteel amid a high exchange rate environment also contributed to the earnings recovery.

Dongkuk Coated Metal said it expanded both production and sales volumes in the second quarter, as it did in the previous quarter, through strategic sales policies despite a prolonged deterioration in market conditions.


kwater@heraldcorp.com