Question · Q3 2025
Yeon Soo asked about the expectation that raw material price drops would end by Q4, and if product prices could increase from Q1 next year assuming no further raw material price declines, especially given current inventory levels. He also sought updates on the government's steel industry modernization announcement, specifically regarding the potential suspension or shutdown of Stainless Plant 2 by year-end, the operational status of Phoenix 3 Plant by year-end, and the profitability (plus, minus, or break-even) of Phoenix 2 Plant.
Answer
Lee Joo-Tae, Head of Marketing Strategy, stated that Q4 raw material prices are expected to remain comparable, with fluctuations. He noted that while raw material price drops previously aided profits, the steel market isn't expected to fully turn around next year in terms of volume. He anticipates average selling prices to drive up due to AD impact on steel plates, with overall spread improvement depending on auto formula, potentially leading to better results in Q2/Q3 next year. A representative from Steel Business Management clarified that the government's modernization policy focuses on unfair trade, decarbonization, and value-added products, with POSCO working with the government on a consensus. They stated that nothing has been decided regarding Phoenix 2 operations, but Phoenix 3 will go live in December after expanded improvements. While not delving into specifics, they expect Phoenix 2 to turn a profit, aligning with POSCO Holdings' overall profitability.