UPDATE 2-POSCO posts weak Q2; sees long-term benefit from China steel reforms

jueves 21 de julio de 2016 06:47 GYT

* POSCO's Q2 operating profit, revenue miss consensus estimates

* Says to pay quarterly dividend from the second quarter

* China measures to curb overcapacity to help prices in long term

* China H2 hot-rolled coil prices seen up y/y, but down vs H1 (Adds POSCO comments, quarterly dividend, other details)

By Hyunjoo Jin

SEOUL, July 21 (Reuters) - South Korean steelmaker POSCO posted a weaker-than-expected quarterly operating profit, but said it was likely to benefit in the longer term as measures to curb overcapacity in top producer China start positively impacting product prices.

China, which is under fire from global rivals for dumping cheap steel exports on to the world market, has said it remains committed to tackling its glut and plans to eliminate 100-150 million tonnes of annual production - more than the United States produces per year - over the next five years.

"We believe restructuring in China will happen in the next four-five years, as China is struggling with trade regulations worldwide and facing pressure from the United States and the European Union," Kim Young-joong, vice president at POSCO, said at an earnings conference call on Thursday. "Restructuring should have a positive impact (on prices) for the long term."

He expects steel prices to hover around $350 per tonne for hot-rolled coil in China in the second half, higher than a year ago but lower than the first half on lingering overcapacity.   Continuación...