LX International announced on July 1 that it recorded sales of 3.83 trillion won and an operating profit of 55 billion won for the second quarter of this year. Compared to the same period last year, sales decreased by 6%, and operating profit fell by 57.6%.
A company official noted, "The downturn in major economies, including China, has impacted results due to declining resource prices and logistics freight costs, as well as a decrease in sales volume of the key trading item, liquid crystal display (LCD) panels."
The price of Australian coal (NEWC), which was $136 per ton in the second quarter of last year, fell to $101 in the second quarter of this year, while the price for Indonesian coal (ICI4) dropped from $55 to $47. During this period, the Shanghai Container Freight Index (SCFI), which reflects maritime transport freight rates, also decreased from 2,628 points to 1,668 points.
Meanwhile, LX International is accelerating its portfolio transition. It is pushing for productivity improvements at the Indonesian AKP nickel mine acquired last year and pursuing additional nickel asset acquisitions. From a medium to long-term perspective, the company is reviewing investments in copper assets.