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CORRECTED-UPDATE 1-S.Korea's POSCO posts highest quarterly profit in a decade as steel prices jump

(Corrects fourth paragraph to say first quarter, not third quarter)

SEOUL, April 26 (Reuters) - South Korean steelmaker POSCO reported a 120% rise in first-quarter operating profit, its highest quarterly profit since the second quarter of 2011, as steel prices rose sharply due to demand outpacing supply.

The world’s fifth-biggest steelmaker said first-quarter operating profit rose as “profit from all sectors, such as steel, global and infrastructure, and new growth, improved”, including a 12% jump in its sales price of carbon steel.

POSCO said on Monday its consolidated operating profit for the January-March quarter was 1.55 trillion won ($1.39 billion), matching the 1.55 trillion won the company forecast earlier this month and beating a market consensus of 1.3 trillion won according to Refinitiv Smartestimate. It reported 705 billion won in operating profit a year earlier.

First-quarter revenue rose 11% to 16.1 trillion won.

Global steel demand is expected to grow by 5.8% this year, higher than a 4.1% estimate from October, as economies recover from the COVID-19 pandemic, fuelling demand from rebounding auto and construction sectors, the World Steel Association said this month.

POSCO shares fell 0.4% after the earnings announcement, while the wider market rose 0.6%.

$1 = 1,114.1300 won Reporting by Joyce Lee; Editing by Tom Hogue and Krishna Chandra Eluri

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