[Alpha Biz= Reporter Kim Jisun] Yuanta Securities released a report on the 4th, highlighting POSCO Holdings' strategic preparations for the growing demand for electric vehicles (EVs) by expanding its secondary battery materials business. The company is completing construction of related facilities to address long-term market growth.

However, the report noted challenges in the near term, including initial costs due to low utilization rates of new facilities. The global EV market faces a "chasm" following subsidy reductions or cancellations in key countries since last year. Additionally, major global automakers (OEMs) have been delaying or reducing EV-related investments, creating uncertainties in demand and pressuring lithium and other battery material prices, which have yet to rebound.

Yuanta also pointed out that China's sluggish steel market has impacted both domestic and export markets, affecting POSCO's steel business and its overseas subsidiaries. The potential for heightened regulatory challenges from the upcoming U.S. Trump administration was also cited as a key uncertainty.

Regarding the shutdown of POSCO's Pohang wire rod Plant 1, the report linked it to weaker demand and intensifying competition rather than just operational adjustments after the shutdown of Blast Furnace 1.

Looking ahead, POSCO plans to mitigate profitability declines by increasing sales of high-value-added products and improving cost efficiency. Yuanta expressed optimism about POSCO's long-term prospects, citing its potential for profitability improvements in the steel sector as the company expands into the growing Indian market.

 

 

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