China demand spurs POSCO
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POSCO sells about 8 percent of its steel output to China.
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SEOUL, South Korea (Reuters) -- South Korea's POSCO, the world's third-largest steel maker, says operating profit in October rose by a third from a year ago on higher product prices, spurred by strong demand from China.
"Demand in China was very strong, and the domestic demand was also unexpectedly strong despite a slump in the local economy," Cho Jae-ku, general manager of POSCO's investor relations department, told Reuters Tuesday.
The South Korean steel maker sells only seven to eight percent of its output to China but demand in the neighboring economy is important because prices there affect contracts in other countries.
POSCO said in a filing to the financial regulator that operating profits in the month rose 33 percent to 312 billion won ($262 million), up from 235 billion won profit a year earlier. Sales rose 21 percent to 1.33 trillion won from 1.10 trillion.
This indicated POSCO's operating margin rose by 23 percent in October this year, compared with 21 percent both in October last year and September this year.
Shares in POSCO closed 0.36 percent higher at 139,500 won, compared with a 0.5 percent rise in the broad market.
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