POSCO registered a decline of 36% in its operating profit for the three month period ended March 2011.

The South Korean company failed to meet up the market projections because of high raw materials prices in addition to feeble demand.

The world's No. 3 steel manufacturer, which trails ArcelorMittal and Baosteel, stated that its January-March operating profit remained at 921 billion won ($852 million), beneath a consensus estimation of 1.1 trillion won by Thomson Reuters I/B/E/S.

The company has an operating profit of 1.44 trillion won during the same period of last year.

POSCO lifted up domestic steel rates by around 16 to 18% this week in its first increase since July 2010 owing to the increase in rates of raw materials like iron ore and coking coal.

Rates of spot iron ore climbed over 30% since July.

The company's scrips have little changed thus far in 2011, underperforming the broader market that refurbished record highs this month, and lagging its home rival Hyundai Steel's 19% jump.