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Hyundai Steel's 2025 Net Profit Plunges 84% Amid Construction Slump

Hyundai Steel reported an 84% collapse in its 2025 net profit, attributing the dramatic fall to a prolonged construction industry slump and rising global protectionism, specifically U.S. steel tariffs. Despite the net profit plunge, the company's operating profit saw a significant 37% increase, aided by higher sales of premium products and domestic government measures. Looking forward, Hyundai Steel plans to begin mass production of advanced high-strength steel and expand supplies for renewable energy and nuclear sectors to improve profitability. Furthermore, it is progressing with a major $5.8 billion investment to build an electric arc furnace steel mill in Louisiana, USA, aiming to supply its affiliate automakers by 2029.

Key Points: Hyundai Steel Profit Drops 84% in 2025 on Construction Downturn

  • 84% net profit plunge
  • Construction sector downturn
  • U.S. import tariffs impact
  • 37% operating profit rise
  • $5.8B U.S. mill investment
2 min read

Hyundai Steel's net profit plunges 84 pc in 2025 on construction downturn, protectionism

Hyundai Steel's net profit fell 84% in 2025 due to a construction sector slump and U.S. protectionism, though operating profit rose 37%.

"A prolonged slump in the construction industry and growing protectionism, including U.S. import tariffs, weighed on earnings. - Company Spokesperson"

Seoul, Jan 30

Hyundai Steel Co., South Korea's second-largest steelmaker, said on Friday its net profit plunged 84 percent in 2025 from a year earlier due to a downturn in the construction sector and rising protectionism.

Net profit fell to 1.4 billion won ($970,000) last year from 8.8 billion won the previous year, the company said in a press release.

"A prolonged slump in the construction industry and growing protectionism, including U.S. import tariffs, weighed on earnings," a company spokesperson said, reports Yonhap news agency.

The United States currently imposes tariffs of up to 50 percent on steel products imported from South Korea.

Operating profit rose 37 percent to 219.2 billion won from 159.5 billion won during the same period. Sales fell 2.1 percent to 22.73 trillion won from 23.22 trillion won.

Increased sales of high-end products and government measures aimed at curbing an influx of low-priced steel imports helped lift operating profit, the company said.

To improve profitability, Hyundai Steel said it plans to begin mass production of third-generation advanced high-strength steel (AHSS) in the first quarter and expand supplies of thick steel plates for offshore wind power facilities and nuclear reactors this year, said the report.

Hyundai Steel is also building a 2.7 million-ton-per-year electric arc furnace (EAF) steel mill in Louisiana, scheduled for completion by 2029, to supply automotive steel to U.S. plants operated by its affiliates -- Hyundai Motor Co. and Kia Corp.

The company has 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, the report mentioned.

- IANS

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Reader Comments

P
Priya S
An 84% drop in net profit is shocking! 😲 It shows how vulnerable even major players are to sectoral downturns and trade wars. The bright spot is the 37% rise in operating profit—focusing on high-end products is clearly the way forward. Our steel sector in India faces similar challenges with cheap imports.
A
Aman W
Interesting read. The pivot to offshore wind and nuclear reactor steel plates is a forward-thinking move. With India also pushing for renewable energy and nuclear power, there might be collaboration opportunities here. The global steel market is in for a tough phase.
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Sarah B
While the article is informative, it lacks depth on the "construction downturn." Is this a global trend or specific to certain regions? The connection between real estate slowdowns and core industries like steel is crucial for understanding broader economic health.
V
Vikram M
$5.8 billion investment in the US! That's huge. It shows long-term confidence despite short-term pain. The electric arc furnace tech is more sustainable. Hope Indian steel majors like Tata and JSW are also investing heavily in green steel technology. The future is in high-strength, specialized steel.
K
Kavya N
The numbers tell a story of resilience. Sales down only 2.1% despite such a massive profit drop means their core business is holding. The strategy shift is working. It's a lesson in agility for any capital-intensive industry. Jai Hind! 🇮🇳 Our manufacturers can learn from this.

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