Ulsan, South Korea – Sales were up in the second quarter at Songwon, rising to KRW273.5bn ($202m) from KRW269.2bn in the 2023 quarter. However, EBITDA was down by 18.0%, declining from KRW31.5bn last year to KRW25.8bn this.
The company said that, as anticipated, the quarter was challenging as a result of ongoing macroeconomic issues and geopolitical tensions. Market price pressures and disruptions in logistics also had an impact.
Reduced demand in key markets continued to impact its performance chemicals division, which includes its polyurethanes businesses. The situation was further aggravated, it said, by shipping disruptions in the Red Sea, and intense market pricing pressures.
Both its solution polyurethanes and thermoplastic polyurethanes businesses had a weaker second quarter than first quarter. This was largely attributed to low demand in the domestic market in Korea and also in the wider south-east Asian market. Delayed customer approvals also had an effect, it said.
The company said that geopolitical tensions and market uncertainties, including fluctuating demand and an unclear rebound in China, are affecting customers’ ability to accurately forecast the rest of the year. However, it expects demand will be similar in the third quarter, driven by customers’ response to ongoing logistics issues.
“The organisation will remain cautious and continue adapting its operations to changing market conditions, focusing on long-term value creation and strategic priorities for sustainable growth,” the company said. “Songwon is confident that it is well positioned to continue tackling emerging challenges and reliably supplying its customers.”
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